The Disappearance of Work: Automation and North America in the Eighties and the Nineties

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Contents

UNDER CONSTRUCTION

Chapter 1. The American Dream and the Baby Boomers

The American Dream

The American dream of prosperity is what is deemed to draw large numbers of immigrants to America. Companies eager to attract immigrant labor to their firms represent themselves as the golden road that leads the newly-arrived from rags to riches. The CEO of a chain of donut shops, for example, asserts that: "Franchise operators, many of them Asian and Latin-American immigrants, can become millionaires. Says Dunkin' Donuts Chairman Robert Rosenberg: 'Today we are the way into the middle class and the American dream.'" Greenwald, 1984, 44.)

Franchise operators, many of them Asian and Latin-American immigrants, can become millionaires. Today we are the way into the middle class and the American dream. (Greenwald, 1984, 44.)

Baby Boomers – They were coddled

From the first, the Baby Boomers were accustomed to instant gratification. Often brought up in shiny new suburban enclaves of middle-class comfort, they were doted on by parents who were counseled by Dr. Spock to dispense with the rigidities of traditional child rearing. ... Hopping from one instant fad to another -- from Davy Crockett coon skin caps to Hula-Hoops -- they moved as a single mass, conditioned to think alike and do alike. Trendiness became a generational hallmark; from pot to yoga to jogging, they embraced the In thing of the moment and then quickly chucked it for another. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Baby Boomers – They were rebellious

In reaction to parental values deemed empty and materialistic, a flamboyant and vocal minority known as the Woodstock generation preached rock music, free love and heightened consciousness. Mostly they celebrated youth. "We ain't never, never gonna grow up," yelled Yippie Leader Jerry Rubin. "We're gonna be adolescents forever. " (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Rubin was already 30 when he was posturing as a Peter Pan of the left. By 1980 he was a $36,000-a-year securities analyst on Wall Street declaring that "money is power." At least Rubin was able to land a well-paid job. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Baby Boomers - Demography

Demographers somewhat inelegantly refer to the Baby Boom generation as "the pig in the python," a moving bulge that distorts and distends everything around it as it rumbles through the stage of life. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

Baby Boomers – They have become competitive

Egalitarianism might have been the avowed ethic of their youth, but competition was, and still is, the harsh reality. (Thomas, 1986, 27.)

Locked together in a crowded race, many Boomers have learned to use their elbows. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

Although the sheer size of the generation provided a sense of solidarity and power, it ultimately proved to be the Baby Boomers' bane. There were simply too many of them to maintain in the style to which millions became accustomed as affluent children of the '50s and '60s. Egalitarianism might have been the avowed ethic of their youth, but competition was, and still is, the harsh reality. Many bravely refused to admit it, yet the fact is that many Baby Boomers do not live as well as their parents, and may never. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

Members of a generation that has made a pastime out of prolonged adolescence. (Thomas, 1986, 26.)

Baby Boomers – They are ageing

The generation that wanted to stay forever young is entering middle age. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 26.)

Baby Boomers – They had influence

The Baby Boomers were the Spock generation, the Now generation, the Woodstock generation, the Me generation. Nor were they exactly shy about all the attention. Through high times and hard times, no other group of Americans has ever been quite so noisily self-conscious. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

"Because of their numbers and their approach to life, Baby Boomers are setting standards for the rest of us," says Jane Fitzgibbon, director of research and development for the Ogilvie & Mather ad agency. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

The boom heard across the United States -- indeed, across North America -- last week was the sound of fortysomethings seizing control of the White House and preparing to set the agenda, tastes and style of an America rushing into the 21st Century. Historians have often noted that John F. Kennedy brought the junior officers of the Second World War to the White House. Now, baby boomers Bill Clinton and Al Gore have brought the generation shaped by the Vietnam War, avoiding it, fighting it or protesting it, to the heights of power in Washington. America, and perhaps the world, has changed profoundly and permanently. It remains for Clinton to unroll the implementation plans for his new policies before Americans can begin to assess the magnitude of the changes that they have wrought. (Kevin Doyle, "Rise of the Baby Boomers," Macleans, Nov. 16, 1992, 2.)

Baby Boomers – Some of their expectations have been dashed

The generation idealized by Madison Avenue for its superior muscle tone and free-spending habits is ruefully discovering that, contrary to the promise of the ads, it cannot have it all. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

The Baby Boom, says Richard C. Michel of the Urban Institute, was hit by a quadruple whammy: inflation, fierce competition for jobs, exorbitant housing costs and the recessions of the '70s and early '80s. "They grew up with the expectation that they would live better than their parents no matter what they did," says Michel. "The 1970s ended that. It was a time of tremendous economic disillusionment for many people." (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28-9.)

[Brian Weiss] feels funny about turning 40 this year. "Middle age sounds a bit strange because many of us haven't attained the goals that our parents attained at that age. I mean, how can you be an adult when you don't own your a house? (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 26.)

In the harsh economic climate of the 1970s, Baby Boomers discovered that the prosperity many took for granted as teenagers was hardly a given in the grownup world. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Baby Boomers – What was their commitment?

Long absorbed in themselves, the Baby Boomers are a generation that has avoided or postponed commitment to others. Many have little loyalty to their employers and less to political leaders or ideas. Partly because of the economic squeeze, they get married later and have children later. They also divorce more than their parents. Quite a few, it seems, are destined for an awfully lonely old age. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 27.)

Between 1973 and 1983 the median real income of a typical young family headed by a person ages 25 to 34 fell by 11.5%. In the 1970s, for the first time in history, the economic value of a college degree declined. An awful lot of physics majors found themselves driving cabs. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

[Audrey Burnam, research psychologist at UCLA:] "I certainly expected to be able to afford a home. I am comforted," she sighs, "that this is happening to a whole generation." (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Those who rented in the inflationary decade watched helplessly as the price of homes took off. People born late in that generation found that home prices were out of sight even before they entered the housing market. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Chapter 2. Killing for Market Share: The World of Business Strategy

Bourgeois Society

Bourgeois society seems everywhere to have used up its store of constructive ideas. It has lost both the capacity and the will to confront the difficulties that threaten to overwhelm it. (Christopher Lasch, The Culture of Narcissism. New York: Warner, 1979, 18.)

Business is a Scramble

Even in the basic science [of superconductivity], the international competition is fierce, and other nations are already scrambling hard for products because the potential payoffs appear to be so great. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

Profit – Profitability is the highest good
 Rubin was already 30 when he was posturing as a Peter Pan of the left. By 1980 he was a $36,000-a-year securities analyst on Wall Street declaring that "money is power." At least Rubin was able to land a well-paid job. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Change - Changemasters

Change Masters: Those people and organizations adept at the art of anticipating the need for, and of leading, productive change. (Rosabeth Moss Kanter, The Change Masters: Innovation for Productivity in the American Corporation. New York: Simon and Schuster, 1983, 13.)

American Economic Manias

The genius of the American system -- enormous flexibility -- has its price. At any given time the society may veer off, so intent on testing the limits of a principle that it loses sight of basic wisdom. [That] wisdom ... was overlooked amid the takeover mania of the Eighties. (Faltermayer, 1991, 70.)

Mergers and Acquisitions

The diversification frenzy of the 1970s precipitated the corporate raids of the '80s, [A. David Silver] explains [in The Inside Raider]. (Frank Mixson, "Books Worth a Look," Entrepreneur, July 1990, 68.)

Like most speculative booms, the follies of the Twenties and the Eighties had one thing in common: using other people's money to get rich. The difference was that instead of relying on borrowed money to make a killing in stocks, the fast-buck folks of recent times made a killing with entire companies. (Faltermayer, 1991, 70.)

Did [the dealmakers] create new wealth for the whole economy? ... No. (Faltermayer, 1991, 58.)

The sideshow will heat up again one of these days, given the system's tolerance for blitzkrieg tender offers. (Faltermayer, 1991, 59.)

[Says Rob Fairholm, managing economist at DRI/McGraw-Hill:] For some companies, having just made it through the recession hanging on to the ledge, the recovery is not quick enough to shift their income statements back to positive quickly enough, and they start falling off in the early stages of the recovery. (Greg Ip. 1991. "Recovery on Hold," Financial Post, December 16, 1.)

Restructuring and Downsizing

Throughout the Eighties and Nineties downsizing continued at frightening rates. The business and daily press were filled with stories of huge layoffs. Downsizing took 20,000 off the payrolls at Control Data from 1984 to 1986. (Koepp, 1987, 50.)

ITT pared its payroll by 100,000 in 1986 alone. (Russell, 1987, 47.)

The members of Fortune magazine's roster of the 500 largest industrial firms were reported to have shed 2.2 million jobs, or more than 10% of their workers in 1983. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 44.)

Struggling General Motors, where profits declined 26% to $2.9 billion last year, has laid off 6.5% of its 578,000 workers since 1981 and announced plans to close twelve major plants by 1989. At the same time, GM will reduce the number of managers and other salaried workers by 25% by the fall of 1989. Similar moves are under way even at Ford, which earned $3 billion in 1986 to overtake GM as the most profitable American automaker. Ford plans to cut its salaried payroll by about 20% by 1990. (Russell, 1987,46.)

For most of the past 50 years, Americans have seen a white-collar job as a buffer against the vicissitudes of the labor market. Factory workers might get laid off every time orders slumped, but managers and professionals knew that their skills were too valuable for such treatment. This belief has been badly shaken by the current recession, which most observers have perceived as having a distinctly white-collar cast. (Aaron Bernstein. 1991. "Who's Really Taking the Brunt of the Recession?" Business Week, October 21, 94.)

'The efficiency problem,' Darman points out, 'is a white-collar problem even more than a blue-collar problem.' Between 1983 and 1987, some 600,000 to 1.2 million middle- and upper-level executives with annual salaries of $40,000 or more lost their jobs. An additional 200,000 to 300,000 such executives are expected to receive pink slips over the next two years." (Russell, 1987, 47.)

Reluctantly abandoning its virtual guarantee of job security, [Eastman Kodak] trimmed away nearly 13,000 of its 129,000 employees last year as part of a program to save $500 million annually. Says Kodak Chairman Colby Chandler: “The principal object is to make the company more agile, more competitive and more flexible." (Russell, 1987, 47.)

Profits - Profitability is the Highest Good

A firm is an organization with a purpose. ... The purpose is ... in general, reasonably, assumed to be the search for profitability. (Horwitz, 1973, 4.)

Profits are to business what power is to politics - not the raison d'etre but the sine qua non. (Horwitz, 1973, 1.)

Money still makes the world go round. (Cooper and Madigan, 1991C, 21.)

Money is the absolute standard. Freedom, and the dignity and well-being of one's fellow creatures, simply don't figure in the basic formula. (Ventura, 1991, 78.)

One reason [for high enrollments in law schools] is obvious: moolah. (Galen, 1991, 31.)

Huge profits ...created little incentive to scrutinize payrolls, costs and employees. ... Times changed. Profits dwindled. (Del Vecchio, 1991, 8.)

Profits - Profits boom

Profits boomed. (Spiro, 1991, 84.)

Profits – Companies are a money machine

Money machine. (Spiro, 1991,80.)

Profits – Money is power

'Money is power.' (Saying attributed to Jerry Rubin by Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28.)

Debt – Debt is a sin

Seven Deadly Sins of Debt. (Reibstein and Friday, 1990, 53.)

Profit – Profit margins can come under pressure

Profit margins ... have come under pressure. (Weiss, 1991A, 85.)

Profit – Profits can be gouged or gored

That tore deeply into profits. (Depke, 1991, 38.)

Profits – Profts are reaped

U.S. brokers ... are reaping record profits." (Holden, 1991, 96.)

Reap ... profits. (McWilliams, 1991, 98.)

Profits – Profits surge

There is good reason to believe this profit surge will have real staying power. (Spiro, 1991, 80.)

===Profit – Profit can be locked inv

Lock in profit. (Spiro, 1991, 82.)

Business - Business is a Fight

The auto slowdown ... clobbered Italy's Fiat. (Neff, 1991, 53.)

Microsoft seems most bare-knuckled when perpetuating its position in operating systems. (Kathy Rebello, "Is Microsoft too Powerful?" Business Week, March 1, 1993, 87.)

===Business - Business is War

Personal income will take another hit in July. (Cooper and Madigan, 1991C, 22.)

A vicious price war has left sales flat. (Stephanie Anderson Forest, "A Little Computer Company that Could -- Until Lately," Business Week, Feb. 15, 1993, 104B.)

Software rivals insist that Microsoft's hyperaggressiveness -- its use of every trick at its disposal to gain an edge, enter a new segment, or eke out one more iota of market share -- has started to edge out innovation itself as the force that determines the shape of the industry. (Kathy Rebello, "Is Microsoft too Powerful?" Business Week, March 1, 1993, 82.)

[He offers 100 marketing weapons.] "Your bank account will brim with profits in direct proportion to how your marketing arsenal brims with these weapons." (Levinson, 1989, 4.)

[These] fundamentals for winning the battle for healthy, honest, and growing profits ... will serve you well on your way to the battlefield. (Levinson, 1989, 3?)

Business – Business is hardball

Computer executives say that just like the IBM of yore, Big Green bullies partners, withholds vital information, disparages competitors, and stalls the market by announcing products long before they're ready. Microsoft denies such charges. While such tactics are in the playbooks of many competitors, in the hands of the richest and most powerful player, they can be lethal. (Kathy Rebello, "Is Microsoft too Powerful?" Business Week, March 1, 1993, 86.)

Wherever [Microsoft] competes, it seems to play a particularly hard-core game of hardball. (Kathy Rebello, "Is Microsoft too Powerful?" Business Week, March 1, 1993, 90.)

The Big Money Crowd

The big-money crowd. (Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.)

To deliver fat returns. (Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.) 
Business as a Surge

The market surged -- in a rally led by short-selling favorites. ("These Shorts Aren't Laughing Now," Business Week, July 29, 1991, 62.)

Advent of Jobless Recoveries

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.)

[Says Chrysler Chairman Lee Iacocca:] "To keep telling the people out of work in Pittsburgh or Detroit that they should become computer technicians or go into a service business is just a cruel hoax." (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

This is the first time in the postwar period that [manufacturing employment] has failed to bounce back in the wake of a recession. (Gene Koretz, "American factories still aren't in a hiring mood," Business Week, June 28, 1993, 22.)

Growth without jobs. It's like M&M's without the chocolate. But that's what is happening. (Business Week.)

The economy appears to have grown at an annual rate of 3% or better during the second half of 1992, but employment in the private sector rose a scant 0.2%. James C. Cooper and Kathleen Madigan, "Why This Upturn Still has that Empty Feeling," Business Week, January 25, 1993, 25.

[A] vast wave of managers and professionals ... have been squeezed out of big corporations struggling to compete in a global economy. ... Even as the economy recovers, U.S. companies are certain not to rebuild their ... management ranks. Bruce Nussbaum, "Corporate refugees: After the pain, some find smooth sailing," Business Week, April 12, 1993, 58.

The cost-cutting electronic revolution is one reason why economic recovery in the U.S. has yielded 3.5 million fewer jobs than past recoveries. Employers are investing in systems, not workers. ("Triple bar [code] decks jobs: code data cuts cost for retailer" Province, Oct. 14, 1993.)

If you still think the economy is jobless and recession-prone, it's time to wake up and smell the data. The invigorating aroma of the May employment report alone ought to be enough to change your mind.

U.S. businesses added 209,000 workers to their payrolls in May, following a 216,000 increase in April. The economy hasn't posted back-to-back job gains of that size in more than three years. .... The Labor Dept.'s annual revisions show that the economy generated 336,000 more jobs from April, 1992, to February, 1993, than previously reported.... In the aggregate, payroll employment has now recovered all of its recession losses. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

The bulk of the new slots have come from business, health, and personal services. Some argue that these are low-wage, dead-end jobs, but in May the average hourly wage in services stood at $10.81, not much below $11.72 in manufacturing. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

The only downer in the May employment report was continued evidence that manufacturers are still loath to expand their payrolls. Indeed, factories shed 39,000 workers last month on top of the 75,000 they let go in April and the 19,000 released in March. Manufacturers are the victims of two long-term trends: defense cuts and rising import penetration. [What about technological displacement of workers??] (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

With consumer demand bouncing back at a time when existing employees already are working full tilt, manufacturers may have no choice but to add to their payrolls. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 30.)

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employ,ment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May.

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ...

In Hunt's view, America's economy cannot achieve long-run prosperity on the basis of service jobs alone. "Until factory employment strengthens significantly," he says, "growth will remain disappointing." (Gene Koretz, "American Factories Still Aren't in a Hiring Mood," Business Week, June 28, 1993, 22.)

Rise of McJobs

"For the first time in American economic history, the shift is toward lower-wage industries." (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.)

To be sure, joblessness remains a serious and painful U.S. blight. More than 8 million Americans are still out of work. Moreover, some critics charge that the American job surge, which has been highlighted by the creation of nearly 2 million new fast-food and other restaurant positions, is turning the U.S. into a nation of hamburger helpers at the expense of jobs in the basic industries. John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 44.

Employment Trends - McJobs

[Douglas Coupland called McJobs the] low-pay, low-prestige, low-dignity, low-benefit, no-future jobs in the service sector. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 32.)

The bulk of the new slots have come from business, health, and personal services. Some argue that these are low-wage, dead-end jobs, but in May the average hourly wage in services stood at $10.81, not much below $11.72 in manufacturing. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

More than 6.3 million people have found work during the recovery, and unemployment has tumbled from 10.7% to 7.5%. ... The U.S. has managed to generate a total of 13 million new jobs, or a 14% increase. Western Europe, by contrast, has lost some 3 million jobs during the same period, while Japan, for all its competitive might, has added 5.6 million positions for a 9% gain. Manfred Wegner, former chief economist of the European Community, calls it simply "the American miracle."

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Between 1973 and 1983 the median real income of a typicval young family headed by a person ages 25 to 34 fell by 11.5%. In the 1970s, for the first time in history, the economic value of a college degree declined. An awful lot of physics majors found themselves driving cabs. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Decrease in Worker Loyalty

"The new culture is to keep your nose clean and your bags packed. The moral that people see around them is, if you fall in love with your company, you're going to get burned." (Rudolph, 1987, 48.)

Between 1973 and 1983 the median real income of a typical young family headed by a person ages 25 to 34 fell by 11.5%. In the 1970s, for the first time in history, the economic value of a college degree declined. An awful lot of physics majors found themselves driving cabs. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Baby Boomers – Where has their activism gone?

For some years, entertainers had lost the '60s activism spirit and were getting caught up in our society's general sense of greed. (Baez, 1990, 55.)

Those who have been striving to be conscious in business, in education, in health care, and so on could join forces to give the stifling materialistic worldview a shove. True, the paradigm is already shifting.... But, because of the environmental crises, the shift has to take place quickly. (Ferguson, 1990, 56.)

Whatever happened to the Love and Peace generation? Whatever happened to the people who landed on magazine covers because they had thrown away lucrative careers to help the less fortunate irrigate their soy fields? At what point on our evolutionary time line did the 'search for self' devolve into an ontology predicated on ownership? I have, therefore I am. Where, in short, have all the flower children gone? (Woodruff, n.d., n.p.)

Cynicism

Stop finding yourself, pal: It's time to get back to work -- if you still have a job, that is. (Olive, 1991, 15.)

Chapter 3. The Death of the American Dream

America - Shared Identity

Compromise and the thought that others might be right doesn't always come easily to a nation built largely on individual effort and enormous belief in itself. (Hampson, 1989, 46.)

The American Dream of the Good Life

An upward business cycle would help, but it may not be enough to restore confidence in the American Dream. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 25.)

What does Motorola's CEO consider an 'American Agenda'? At the top of it is the creation of wealth. "The effect of wealth creation on our republic is vital," he tells the readers of Electronics magazine. "Couldn't we enhance the wealth-creating nature of our society?" (Anon., 1990, "A Call for an 'American Agenda'," 50.)

The [family] just bought a $310,000 home for their extended family of elderly parents, 30-year-old son Patrick and his wife, 26-year-old daughter, and a grandson. With a combined income of $120,000, [family members] own three cars, four televisions, four videocassette recorders, and $6,000 in stereo equipment. (Shao, 1991, 54.)

The American Dream is eroding

The [KPMG] report says there is a widening gap between “haves” and “have-nots.”

In contrast to the ‘Golden Era’ of 1947-1973, when incomes rose across the board, salaries at the upper end of the pay scale are going up rapidly, while the salaries of the majority are stagnant or going down.

The result is an eroding middle class, a growing underclass and a badly tarnished American Dream.” (KPMG report, Transformation to the 21st Century quoted in Doug Ward, “Will True Value in the Coming Milennium Be for Those Who Can Pay?” Vancouver Sun, 25 April 1998, B10.)

Consumption has become a way of life

Our enormously productive economy ... demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our ego satisfaction, in consumption. We need things consumed, burned up, worn out, replaced, and discarded at an ever-increasing rate. (Retailing analyst Victor Lebow after WWII in Durning, 1991, 73.)


Chapter 4. CBT Comes to Town: It’s Time to Change or Die=

Change – Change or die

Executives and academics agree .. that most companies have no choice but to shape up. ("Rebuilding to survive," 1987, 47.)

The electronics market is chaotic and subject to rapid change,” says Joe Lassiter, vice president of assembly, test, and electronic design automation at Tetradyne Inc. in Boston. In such an environment, he says, “suppliers must be agile enough' to turn on a dime and exploit new pockets of growth." (Damian, 1991, 50.)

The 1990s will be the first decade of true global competition and global economic warfare.... Tremendous change -- hyperchange -- is the only certainty. (Rock, 1990, 71.)

The world economy will continue its transformation to a knowledge paradigm, whether we like it or not. We will have to pay for the change; we can either pay for a controlled and successful transformation, or pay even more for a failed transformation, with its unemployment, gutted industries and lack of competitiveness. Change will come and we will choose: plan now, or ruin later. (Janice Moyer, 1991, 52.)

Change - Changemasters

The 1990s will be a time of enormous change in technology, products, supplier-customer relationships, and the global political economy. The one common denominator to these changes is that they will all be played in fast forward. The winners will be those who can cope with, and adapt to, such rapid change. (Corrigan, 1990, 70.)

Technology – Promotes rapid change

Wal-Mart ... collects accurate data on its network of 1400 stores just 90 minutes after the close of a business day. So Wal-Mart can make decisions more than 10 times faster than Sears. ... In textiles, Milliken of Spartansburg, South Carolina, now takes less than a day to create a new customized product. This used to take months. (Gellman, "Quick Response," 1990, 25.)

Restructuring and Downsizing

No wonder the GIs in the trenches are nervous. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are Worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

[Campbell Soup CEO David W. Johnson] wielded a very big knife. He shuttered or sold 20 plants worldwide, got rid of roughly 15.5% of Campbell's 51,700-odd work force, and yanked unprofitable product lines off store shelves. (Joseph Weber, "Campbell is Bubbling, but for How Long?" Business Week, June 17, 1991, 56.)

The drumbeat of announcements of staff cutbacks by major corporations continues unabated. ... The third quarter of 1991 will almost certainly break the previous record of 100,000 job reductions announced in the first quarter of this year. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 24.)

The financial services industry has cut 30,000 jobs in the past year alone. (Laura Zinn, "Takeovers are Out, Soap Powder is In," Business Week, May 6, 1991, 82.)

Re-engineering

Re-engineering means "sweeping changes in management and organizational structure that are redefining how work gets done." (Business Week, June 14, 1993, 57.)

Automated Systems - Bar-codes

In a large-volume operation, the pallet sticker can provide the coding necessary to guide a load through a distribution centre in a rapid transfer from a large highway truck to a smaller vehicle delivering to a particular store.

Information on cartons tells the store what it has received and codes on the boxes in the carton even specify [in] which aisles in the store they are to be placed.

... Some operations with large retail outlets, such as K-Mart, may opt for direct delivery from the supplier omitting the distribution centre altogether, Couling says. ("Triple bar decks jobs. Code data cuts cost for retailer," Province, Oct. 14, 1993.)

Automated Systems - Databases and the Networked Office

"Corporations have been laying off huge numbers of middle managers because the re-engineering and technology make it possible to do without them. In the old corporate hierarchies, middle management's function was to transmit information from the field or factory to the executive suite and relay commands from the corner office back to the troops. Databases and computer networks now do the job faster, better, and for less. (Business Week, June 14, 1993, 58.)

Automated Systems - Automated Hotel Front Desk

The automated front-desk clerk, ushered in by Hyatt a year ago, is beginning to check in guests at other chains. ... For hotels, this technology will speed the check-in process, thus enhancing service and reducing hotel manpower needs. ...

"In five years, you won't see a hotel without one,” said Choice president and chief operating officer Don Landry. "The frequent traveller will just zap over to the machine.” ...

"We sometimes mistake interaction with people as good service,” [Landry] said. “My service is better at my bank when I use the ATM." (Linda Humphrey, "Hotels Automate Check-in," Business Travel News, 10 June 1996, 1and 28.)

Automated Systems - Automated Medical Labs

Three principal strategies exist for reducing a hospital lab's costs: 1) send certain tests out to commercial labs, 2) replace medical technologists with lower‑paid workers [this is in fact happening], and 3) automate where possible to increase the productivity of all personnel involved in the production process.

Laboratory automation is nothing new. Virtually all high‑volume chemistry and hematology test production is now conducted on automated workstations. These "islands of automation" (also known as micro‑automation) have become standard in virtually all clinical labs worldwide. So far, the growth of automation in U.S. hospital labs has been entirely the result of an incremental expansion of the test menus available on these micro‑automated workstation platforms.

The next logical step is to link these islands together with specimen processing and trasnport automation between workstations (i.e., macro‑automation via robotics). Typical components of suchg a macro‑automation system include the inlet unit, sorter, transport system, tracks, lanes, work cells, automated centrifue, level detectors, bar code readers, decapper, aliquotter, outlet, robotics interface, recapper, refrigerated storage unit, automatic discard unit, automatic pipetter, and system controller. ... [page 42/page 43]

WHY ROBOTICS?

There are several compelling reasons why robotics make sense for the clinical lab. Competitive labor costs. ... Because labor accounts for up to 80% of lab testing costs, a reduction in labor provides the largest opportunity for financial savings.... ... Robotics essentially reduces this marginal cost of labor within the lab to zero. ("Levelling the Playing Field: The Economics of Robotics in the Hospital Clincial Lab," Medical Laboratory Observer, January 1998, pages 42‑3.

Automated Systems - Automation of Travel

Expect a growth of on‑line bookings. In Britain alone, the market is set to grow from less than $1 million in 1997 to $1 billion by 2002. This will drive many travel agents out of business. (Economist, ???)

Peggy Lee, of Lee Travel Group, in Westport, Conn., ... thinks commission cuts, not the Internet, are the immediate cause of downsizing. But she stuck by her prediction that the number of full‑service agencies will fall from 32,00 to 15,000 this year through a combination of closures, consolidations, and mergers. (Gary Langer, "Welcome to the Deathwatch," Travel Counsellor, Feb. 1998, 14.)

The dawning of the Information Age is creating profound and fundamental changes in our lives. Competitors are becoming allies and allies are becoming vendors. SABRE's Travelocity, AOL's Preview Travel Online and Microsoft's Expedia typify multi-million-dollar Web investments designed to compete head-to-head with our agencies. The good news is that we can compete and keep our customers' loyalty if we learn to use the Internet and all of its collective information to our customers' advantage. (Scott Ahlsmith, "Developing an Internet Strategy," Travel Counsellor, Feb. 1998, 51.)

It is easy to view the Internet as a foe. We see many new electronic forms of agency bypassing popping up on the Internet. Although we need to stay informed of these new competitors, we should not fear the Internet. ...

Human nature causes each of us to hesitate and pause when we encounter new circumstances. When we don't know what to expect, we tread carefully. In the case of the Internet, it won't hurt you. In fact, if you use it to increase your agency's visibility, improve your interaction with your customers and access a wealth of new and valuable information, you'll learn to love it -- and wonder how you ever sold travel without it. (Scott Ahlsmith, "Developing an Internet Strategy," Travel Counsellor, Feb. 1998, 51.)

In the age of the World Wide Web, [computer reservations systems or] CRS technology had become woefully inadeqate for many agents. (William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 44.)

[Bruce Bishins, president and CEO of United States Travel Agent egistry] adds: "We are on the downside of a Darwinistic cyclical blip. The herd increased way past the point of being healthy. The proliferation of 28 travel agencies in every little town was not a good thing for everybody." (William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 46.)

As suppliers increasingly learn how to market via the World Wide Web, not only travel agents, but the CRSs themselves, are in dange of being bypassed. (William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 46.)

Automation is a solution. The automation question for travel agents should be, 'Am I using it to the fullest extent? (Sue Powers, Worldspan's vice president of sales and marketing, in William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 46.)

The CRSs are to some extent dinosaurs, and they're working in a 15-year-old fog. (Mike Estill of American Society of Travel Agents in William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 48.)

The CRS firms employ 1970s technology and don't invest in new technology, which is very interesting to us. (Patrick Husting of Microsoft Consulting Services in William J. McGee, "The Changing Shape of the CRS Industry," Travel Counsellor, Feb. 1998, 48.)

Automation – Advantages – Use computer-based technology or die

The only way American manufacturing can revive is by becoming capital-intensive instead of labor-intensive. That means using all kinds of advanced technology, new materials, and so on. (Gina Goldstein. 1990. "Joseph F. Coates: Engineering in the Year 2000," Mechanical Engineering, October, 79.)

Automated Systems – Advantages – Computer-based technology saves labor costs

Technology allows small business to accomplish two important tasks, according to [Julian] Lange [professor of entrepreneurial studies at Babson College]: cut costs and improve customer service. These technological development, while aiding the small business persn, are also one of manifestation of the rapid change that typifies most industries, particularly travel. And that makes training and education more important than ever for the small business workforce. (Kate Rice, "The State of Small Business," Travel Counsellor, Feb. 1998, 28.)

Automated Systems – Advantages – Computer-based technology saves time

[McKesson Corp.] has been using computerized inventory systems for more than a decade. [John W. Fitzgerald, VP of information services] thinks he already sees the next wave of productivity-enhancing change. Systems that tightly link the customers, retailers, distributors, and manufacturers. Instant response means less money spent on interest charges, idle plants, and inventory buildups. The paper invoice will go the way of the quill pen. (Business Week, June 14, 1993, 64.)

A year ago, Aetna [Life and Casualty Co.] had 22 business centers, with a staff of 3,000. It took about 15 days to get a basic policy out of the office, in part because 60 different employees had to handle the application. Now, the operation has been pared down to 700 employees in four centers - and customers get their policy within five days. How? Because a single rep sitting at a PC [personal computer] tied to a network can perform all the steps necessary - calling into an actuarial data base, for example - to process an application immediately. When all the relevant information is gathered, the policy is passed along the network to headquarters in Hartford, [Conn.] where it's printed and mailed within a day. (Business Week, June 14, 1993, 60.)

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

Automated Systems – Advantages – Computer-based technology offers tremendous computing power to small business

Technology is developing at such speeds that, for a relatively small investment, a small company can harness amazing power, be it in database marketing, harvesting the Internet or finding where to trim in profit‑and‑loss spreadsheets. (Kate Rice, "The State of Small Business" Travel Counsellor, Feb. 1998, 26.)

Automated Systems – Advantages – Computer-based technology overcomes time, distance, and other barriers

Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated.  Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities. (Farrell, 1991, 73.)

[Asynchronous Transport Mode] will provide a single network for all traffic types - voice, data, video. ... ATM [allows] interoperability of information, regardless of the 'end-system' or type of information. ... User's needs for connectivity [have expanded] from the LAN [local area network] to metropolitan, national, and finally world-wide connectivity. ... Over time, as ATM continues to be deployed, the line between local and wide networks will blur to forma seamless network based on one standard. ("ATM Benefits" and "Why all of the Interest in ATM?" ATM Forum, www.atmforum.com, 6 March 1998.)

Automated Systems – Advantages – Computer-based technology allows tight control and rapid decision-making

Hundreds of separate sites - stores, offices - transmit information to a single headquarters, where it's digested, decisions are made, and directions in turn sent back to the sites, which don't need to be in touch with one another. (Fortune, May 17, 1993, 41.)

In today's world of fast-moving global markets and fierce competition, the windows of opportunity are often frustratingly brief. ... [One response to this situation is] the virtual corporation ... a temporary network of independent companies -- suppliers, customers, even erstwhile rivals -- linked by information technology to share skills, costs, and access to one another's markets. It will have neither central office nor organization chart. It will have no hierarchy, no vertical integration.

Instead, proponents say this new, evolving corporate model will be fluid and flexible -- a group of collaborators that quickly unite to exploit a specific opportunity. Once the opportunity is met, the venture will, more often than not, disband. 'It's not just a good idea," says Gerald Ross, co-founder of Change Lab International.... "It's inevitable." (Business Week, Feb. 8, 1993, 99.)

In the [virtual corporation] concept's purest form, each company that links up with others to create a virtual corporation will be stripped to its essence. It will contribute only what it regards as its 'core competencies,' the buzz phrase for the key capabilities of a company. It will mix and match what it does best with the best of other companies and entrepreneurs." (Business Week, Feb. 8, 1993, 99

Automated Systems – Advantages – Computer-based technology workers earn more pay

Workers who use computers earn an average of 10% to 15% more than those who don't, even for the same job. Secretaries who use computers, for instance, enjoy a premium of up to 30%. (Business Week, June 14, 1993, 68.)

Impact on the Working Public - Shrinkage of work

What is a computer for, if not to save labor? (Steinhart, 1991, 58.)

Theoretically every time you make a $10,000 investment on technology you should have replaced one employee. (James Miller, CEO of Royal Trustco in Macleans, Nov. 23, 1992, 44.)

Most of the jobs lost are lost forever. (James Purdie, "Upgrading is the best route to job security," Financial Post, Dec. 16, 1991, 11.)

Consumer goods are becoming increasingly decorated with triple-deck bar codes, not the single strip familiar for years on everything from munchies to magazines. ...

Some critics ... call it deconstruction rather than reconstruction -- jobs are a casualty at every point in the delivery chain. ...

[International trade consultant Patrick] Couling says the cost-cutting electronic revolution is one reason why economic recovery in the U.S. has yielded 3.5 million fewer jobs than past recoveries. Employers are investing in systems, not workers.

“The fallout can be devastating. But it is more of a disaster to do nothing. It is a case of damned if you do and damned if you don't," he says. ("Triple bar decks jobs. Code data cuts cost for retailer," Province, Oct. 14, 1993.)

"There was such hope for the single market," laments Alcatel's [Chairman Pierre] Suard. "Now, people see it's here, but unemployment continues to rise. It's extremely dangerous." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Revolutions are always bloody, and the productivity revolution is no exception. As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the economy grew by 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder why so many Americans are distressed: They see their paychecks lagging inflation and they worry about joining their families and friends in the ranks of the unemployed. To these folks, the productivity revolution is a threat, not a boon. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

[Computers are taking] over progressively more of the work that can be routinized ... from guiding machines that make things to transmitting information within the organization or across its boundaries. Bingo, you've got flexible manufacturing, programmed trading, and point-of-purchase terminals wired into the supplier's factory. (Fortune, May 17, 1993, 39.)

Most hiring freezes remain solid - disappointing news for the 3 million Americans who have exhausted their unemployment insurance benefits this year.

... 3.4 million more jobless will use up their benefits next year. ("Business Leaders Expect More Layoffs," U.S. News & World Reports, October 28, 1991, 20.)

Obsolescence of Knowledge

Obsolescence is the primary threat to the mechanical engineer as a professional," said Mechanical Engineering. (Gina Goldstein. 1990. "Joseph F. Coates: Engineering in the Year 2000," Mechanical Engineering, October, 77.)

Technical knowledge tends to be outdated in three years, compared with seven years only ten years ago. (James Purdie, "Upgrading is the best route to job security," Financial Post, Dec. 16, 1991, 11.)

88 percent of our readers say engineers are underutilized. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S67.)

Technological obsolescence is the chief career issue in Japan. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S57.)

Chapter 5. Beat Them before They Beat Us: Globalization Enters the Popular Consciousness

“Industrial Policy”

I don't think there's any choice [but for the U.S. to have an industrial policy]. We have to match the competition. And we'd better get at it soon, because we haven't got a lot of time before the comparative energy of our trading partners becomes impossible to match. We need an industrial strategy. (Charles E. Spock, President and CEO of National Semiconductors in Weber, 1990B, 56.)

Globalization – Globalization and change go together

Globalization and innovation are two sides of the same coin. (De Wilde, 1991, 45.)

Upgrade your skills

In the face of such changes, the best way to get back into the workforce or protect job security against further layoffs is to find out where the new jobs are likely to appear, reassess your qualifications and organize a personal skills upgrading program. (James Purdie, "Upgrading is the best route to job security," Financial Post, Dec. 16, 1991, 11.)

CBT - Impact – CBT strips away layers of management

Whole levels of middle management have been wiped out and will not be replaced. (Harold Johnson, managing VP of Korn/Ferry International, an executive search firm in Brownstein, 1991, 29.)

Corporations have been laying off huge numbers of middle managers because the re-engineering and technology make it possible to do without them. In the old corporate hierarchies, middle management's function was to transmit information from the field or factory to the executive suite and relay commands from the corner office back to the troops. Databases and computer networks now do the job faster, better, and for less. (Business Week, June 14, 1993, 58.)

We still have whole functional divisions disappearing within a business,” [Joseph] Janotta [president of Chicago-based outplacement firm Janotta, Bray] says. “Middle- management levels of accounting, control and strategic planning are vanishing." (Dan Cray, "The Great American Layoffs," Time, July 20, 1992, 65.)

Like lieutenants in the army, these [middle managers] are the people who translate the generals' commands, squad by squad, into movement on the ground. But their demoralized state of mind today is not at all conducive to improving productivity or increasing quality -- let alone innovating. All too often, the people who used to be the brass' most reliable backers ... now seem to be more disenfranchised and cynical than the hourly folks. And because of their perception that the upper echelon has turned on the underlings, the white-collar blues won't go away anytime soon, economic recovery or no. (Fisher, 1991, 70.)

Mergers, acquisition and downsizing are stripping away the layers of middle management, who often acted as intermediaries between functions. Decentralization and globalization of operations are forcing companies to put greater control into the field. These trends are altering traditional chains of command and resulting in flatter corporate organizations than ever before." (Anon., (McDonald, 1991, 15.)

Typical job seekers at British employment agencies ... are 40-year-old middle- or senior-level managers formerly earning $62,000. (Reimer, 1991, 44.)

[A] vast wave of managers and professionals ... have been squeezed out of big corporations struggling to compete in a global economy. ... Even as the economy recovers, U.S. companies are certain not to rebuild their ... management ranks. Bruce Nussbaum, "Corporate refugees: After the pain, some find smooth sailing," Business Week, April 12, 1993, 58.)

While middle managers make up only 5% to 8% of the work force, they account for 17% of all dismissals in the past three years. (Fisher, 1991, 71.)

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May.

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ...

In fact, it seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs than there were when the recession started in July, 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals - excluding the technical and sales people whom the BLS [Bureau of Labor Statistics] lumps into its white-collar category - and you actually find 400,000 more such jobs today. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Increase of Job Uncertainty and Fear

"Fear is rampant in the workplace. (Fisher, 1991, 71.)

Disgruntled employees don't dare leave their posts in 1991. There might not be another job down the road. So they stay and gripe. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S52.)

Rise of Outsourcing, Contract and Temporary Work

Even when companies have work that needs to be done, they often use temporary workers to avoid paying the cost of benefits. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Over the last year, [U.S.] employment by temporary agencies has soared by a staggering 240,000. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Companies are often using outside consultants, many of whom were laid off earlier, to lower their costs. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

The Devaluation of the Worker

A casualty of the race to compete in the new global economy is the value and dignity of human work. (Stephanie Baker Collins, national researcher, Citizens for Public Justice, "Let the job-killers bear more of UI's costs," Vancouver Sun, 19 Dec. 1995, A15.)

"Only yesterday, employees were held to be the most valued assets of a corporation. Then the recession began to do its work. Today the job market is awash with curricula vitae, and people don't seem so valuable any more. Where are they now, the workers who were invited to conceive and embrace a company vision? Many are gone, swept up in the dehumanizing process of 'body-count reductions.'" (Olive, 1991, 15)

"'Companies are managing their workers as they manage their inventories of unsold goods,' said Leslie McNulty, research director of the United Food and Commercial Workers Union. 'They are trying to keep both sets of inventories -- employees and merchandise -- as low as possible.'" (Uchitelle, 1990, 4; Johnston, 1991, 115.)

Demoralization

Like lieutenants in the army, these [middle managers] are the people who translate the generals' commands, squad by squad, into movement on the ground. But their demoralized state of mind today is not at all conducive to improving productivity or increasing quality -- let alone innovating. All too often, the people who used to be the brass' most reliable backers ... now seem to be more disenfranchised and cynical than the hourly folks. And because of their perception that the upper echelon has turned on the underlings, the white-collar blues won't go away anytime soon, economic recovery or no. (Fisher, 1991, 70.)

Falling Expectations

Perhaps the most striking aspect of the latest [Bureau of Labor Statistics] survey results is the downward mobility of so many workers. The median nominal wage of reemployed workers declined by 11.8%. Over 40% of workers back at full-time jobs were earning less than they had on their old ones, and more than 25% suffered pay cuts of 20% or more. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 1991, 24.)

"I think we're entering a decade or more in which the standard of living is not going to grow." (Audrey Freedman, President of Manpower Plus in Dan Cray, "The Great American Layoffs," Time, July 20, 1992, 64.)

"Twenty-three million Americans, nearly one in 10, are on food stamps." (NBC Nightly News, October 30, 1991.)

Increase in credit spending

"Debt-burdened consumers are staying out of stores. ... Shoppers have remained at home because they are uncertain about their jobs and the overall state of the economy. A survey has revealed that two thirds of Americans think the country is on the wrong track. The latest data showing a continued rise in claims for unemployment benefits have reinforced these negative feelings." (Susan Dentzer. 1991. "Uncooperative Patient," U.S. News & World Report, October 21, 62.)

The fate of the upturn has always been in the hands of the consumers. James C. Cooper and Kathleen Madigan. 1991. "The Coup Showed Just How Fragile the Recovery Really Is," Business Week, September 2, 17.

Rising Bakruptcies

A staggering 23,161 British businesses collapsed in the first half of 1991, and 900 companies are going out of business each week. (Reimer, 1991, 45.)

Chapter 6. Actions to be Taken

The New Paradigm

The "global dilemma," hinted at in last June's Earth Summit in Rio de Janeiro, is that modern society is not viable on the planet in the long term, or even in the medium term. This is true regardless of whether world population levels off at 10 billion, or 6 billion, or 4 billion; only the time scale changes.

At the same time we see multifold signs of a shift in worldview which could potentially bring about resolution of the global dilemma. This fundamental change of mind is spreading around the modernized world. ... Persons involved with the ecological, feminist, "alternative development," "new paradigm," and other movements are part of this worldview shift. It reaches to the most basic assumptions underlying the entire "Western industrial monoculture" which now dominates the Earth. Ultimately it will affect every institution and every person. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 1)

This fundamental change of mind is spreading around the modernized world. However, thus far it is chiefly found in a relatively well educated "middle band" -- not so much in those in positions of obvious power and affluence, and not in those whose primary concern remains a struggle for a decent living or even the bare necessities of life. (Remember, that's the way the Copernican Revolution spread also.) (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 1)

The two institutions that will be most affected by this shift are science and the economy. Science is the only generally recognized cognitive authority in the modern world. Science gives us our dominant worldview; thus it is of critical importance that science "get it right." It is becoming increasingly clear that science does not yet "have it right." The world economy -- business, essentially -- has become the dominant institution on the planet.  As the dominant institution, it must undertake a responsibility for the whole, as the Church did when it dominated the Holy Roman Empire. However, business has no such tradition. In fact, the prevailing understanding is that, in U.S. lingo, "the business of business is business." Neither individual corporations nor business as a sector of society has any tradition of responsibility for the whole.  (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 1)

The scientific worldview is so powerful and prestigious that it may seem presumptuous indeed to challenge it. Yet however well it may serve to generate new technologies to manipulate our physical environment, it has ever fit with those aspects of human experience that we most deeply cherish -- our conscious awareness; our sense of intimacy with nature; our sense of intention and volition; our sense of values and meanings that transcend the pragmatic; our aesthetic, moral, and spiritual sensibilities. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 2)

There is a public misconception about science, not shared by really good scientists. That is that science describes reality. The activity of science is basically a way of understanding based on making models (e.g. H2O, E=Mc2) or choosing metaphors (e.g. electric current, stream of consciousness) to represent certain aspects of reality, and then testing those models and metaphors through empirical inquiry. We use metaphors to understand or communicate about the unfamiliar in terms of the familiar. No one thinks that electric current is really some sort of fluid flowing down the wire, but the term represents certain aspects of the phenomenon in terms of something easily visualized. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 2)

Western science has been insistent that the "elephant" of ultimate reality is really "fundamental particles" and interacting fields. Eastern thought has held (much longer) that it is consciousness. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 2)

Great mischief can result when the models and metaphors of science are mistakenly taken to be the "true" description of reality. Because when they are, then people feel a necessity to defend them, and to stamp out competing reality claims. Many of the conflicts in the history of science, as well as the conflict between science and religion, have been battles between groups who each insist that their metaphors are "really" how reality is. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 2)

The epistemological position of the "hard" scientist is that we know what we know through the empirical observation of quantifiable, replicable interventions in the physical world. A less positivist scientific attitude holds that reality has many aspects, and is never fully captured in any model or metaphor. Thus various kinds of metaphors may be employed, with appropriate ways of testing their fitness and range of applicability -- since they each may help us to understand and communicate about certain aspects of a fundamentally mysterious relationship.

Mainstream science, characterized by an obsession with prediction and control, has almost exclusively employed physicalistic, quantifiable metaphors such as "mechanisms," particles, waves, or fields. Scientists have been very dubious about more holistic metaphors such as organism, personality, ecological community, or the Gaia metaphor for the Earth and its biosphere. They have typically insisted that these whole-system descriptions can or will be understood in terms of their parts.

Mainstream science has tended to disallow totally a third kind of metaphor, a consciousness metaphor. It has tended to be very uncomfortable with explorations of the ways in which experienced reality might resemble our experience of our own minds. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 3)

My own consciousness is my most direct experiencing of reality. Perceptions of the world through the physical senses are far more indirect, being mediated by the unconscious mind in ways only recently appreciated.

Looking into my own mind, I find, first of all, that mind is not something that exists in the space-time world. To the contrary, my experience of the space-time world is constructed within my mind from vast numbers of physical-sense perceptions. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 3)

I find there are levels of awareness, from subliminal to subconscious, to what feel like "higher" or "supraliminal" levels. I also find that there are "partitions" in my mind; there are parts that seem somehow separate from other parts, what C.G. Jung called "autonomous complexes" -- multiple personalities being an extreme case. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 3)

In my experience, consciousness is both something experienced and the experiencer -- that which I consider my "self." Myself is that which thinks my thoughts, feels my feelings, participates in the choosing of my actions, generates my insight and my creativity. The self is surely real in some sense, for it has real consequences. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 3)

As the quantum physicist Erwin Schrodinger put it, "Consciousness is never experienced in the plural, only in the singular." Consciousness is not something to be subdivided, measured, or quantified. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 3-4.)

Within this metaphor (making no ontological claim), things of the physical world are analogous to the images in a dream in the individual mind (images which in the dream state pass certain "reality tests" that they fail to pass in a higher state of awareness). (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 4.)

Vast ranges of extraordinary human experience are far more easily accommodated in a consciousness metaphor than in the reductionistic metaphors of mainstream science. For example, research on creativity and intuition reveals interesting characteristics of the behind-the-scenes part of the mind. Not only does this part of the mind regularly come up with creative solutions to problems, aesthetic creations, and deep wisdom; it also on occasion has available to it knowledge which appears not to have ever been learned through the physical senses. Furthermore, the more it is trusted and turned to, the more competent it seems to become. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 4.)

If one is entranced with the physicalistic metaphors of mainstream science, many of the above sorts of reports have to be viewed with skepticism; nay, with incredulity. They have to be the consequence of undiscovered "mechanism," illusion, or fraud, since in that paradigm there is no other possible way of accounting for them. Within the consciousness metaphor, on the other hand, since one is imagining one universal mind (with levels and partitions), none of these kinds of reports has to be presumptively explained away. The reports need not all be assumed accurate, but they are not intrinsically more mysterious than the more commonplace phenomena that go on within my own individual consciousness. (Willis Harmon, "Signs of a Shifting Worldview: Potential Resolution of the World Dilemma." Paper presented at Planet in Change Symposium, Johannesburg, Oct. 22-25, 1992, 5.)

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Recession Recovery

With consumer demand bouncing back at a time when existing employees already are working full tilt, manufacturers may have no choice but to add to their payrolls. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 30.)

Keep Spending -- The Business Mantra

In addition to the refreshing redolence of more jobs, consumers are also inhaling the sweet smell of extra cash. The recent upturn in hourly and weekly pay is giving households the wherewithal to keep spending. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 30.)

Keep spending. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 30.)

Consumer Spending

Real consumer spending is on track to grow at a healthy clip of about 3% this quarter. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 30.)

Job Statistics

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employ,ment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May.

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ...

Recession Recovery

In Hunt's view, America's economy cannot achieve long-run prosperity on the basis of service jobs alone. "Until factory employment strengthens significantly," he says, "growth will remain disappointing." (Gene Koretz, "American Factories Still Aren't in a Hiring Mood," Business Week, June 28, 1993, 22.)

A deep downturn in manufacturing has cost some 680,000 jobs over the past year. (Michael J. Mandel, "the Slump Struck Some States More Than Once," Business Week, 5 Aug. 1991, 16.

Counsel to workers: Change or die

Careers come and go. Jobs change. This is nothing new. It's just happening far faster than ever before. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., frontispiece.)

Work is going global. We're entering the Information Age. The economy is shifting more and more towards services, and toward knowledge work. Before long, top management absolutely won't be able to run things the old way, even if it deperately wants to. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

New technologies -- especially computers and telecommunications -- have already created intense, worldwide competition for business. Soon, competitoion for your very own job could come from practically anywhere on earth. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Careers have already quit working liken they used to. That's not really anybody's fault. But employees and organizations are very much at fault if they, too, don't change in order to adapt. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

It does no good whatsoever to complain or be bitter about what's happening. In fact, such behavior can only do us harm. We waste precious energy if we resist, get angry, or give in to grief over all that's being lost. We jeopardize our future if we cling to old assumptions and expectations about how careers should operate.

Frankly, the world doesn't care about our opnions. Or our feelings. The world rewards only those of us who catch on to what's happening, who invest our energy in finding and seizing the opportunities brought about by change. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. (Dallas, TX: Pritchett & Associates, introduction.)

Change always comes bearing gifts. Considering the scope and speed of change these days, there will be precious gifts -- many priceless opportunities -- for those of us who play by the new rules, position ourselves right, and take personal responsibility for our future. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Your organization will keep reshaping itself, shoifting and flexing to fit our rapidly changing workd. That's the only way it can hope to survive in this fiercely competitive environment. Look for it to restructure, outsource, downize, subcontract, and form new alliances.

You can also expect flexible ways of working. Duties will be constantly realigned, Short-lived assignments will be common. Maybe you'll work on a contract basis, or spedn time on several project teams. You might even end up working for more than one "employer" at a time. You'll probably have a constantly new set of coworkers, more new bosses, even new careers.

You're not going to like some of this. Chance are, nobody will like it all. But that's neither here nor there. Question is, will you get with the program anyhow? (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

You need to know that resistance to change is almost always a dead-end street. The career opportunities come when you align immediately with new organizational needs and realities. When you're light on your feet. When you show high capacity for adjustment. Organizations want people who adapt fast -- not those who resist or psychologically "unplug." (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

(Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p..)

Defense Decline

Litton, one of the biggest defence contractors, for the past year has been targeting ways to expand its revenue base in the commercial market. A study conducted a year ago identified eight areas in which Litton already has expertise, including travel and hospitality, healthcare, Year 2000 compliance and general services [Richard Kerr, vice president and general mananager for Litton Travel and Hospitality Group in Mary Ann McNulty, "Tech Outsourcers Target Travel," BTN, 8 December 1997, 47.)

Jobless Recoveries

Perhaps the most striking aspect of the latest [Bureau of Labor Statistics] survey results is the downward mobility of so many workers. The median nominal wage of reemployed workers declined by 11.8%. Over 40% of workers back at full-time jobs were earning less than they had on their old ones, and more than 25% suffered pay cuts of 20% or more. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 1991, 24.)

Trouble

In the business of life, a man's disposition and the secret workings of his mind are better discovered when he is in trouble than at other times. (Francis Bacon in Bowen, 1963, 226-7.)


Unclassified

Agile Capital

A global firm which can shift cash flows from several countries to competitive activities in a given country may be able to underprice a multidomestic competitor, gain market share thereby, and, possibly, even drive a well-established but single-country oriented firm out of its market niche altogether. How does a multidomestic or multinational firm anticipate such competitive pressures and make appropriate responses before its cash and investment potentials are eroded? The answer often is, the firm must itself 'globalize' to survive. This is a key reason why firms desire to expand their strategic perceptions and to become 'more global.' (Spivey and Thomas, 1990, 88-9.)

It's easy to fall into the habit of blaming our woes on others. Today, it often seems as if growth and job gains are coming at the expense of the industrialized world -- and the evidence exists to support the argument. After all, U.S. manufacturers have said that they are shutting downs stateside plants and moving production to Mexico, where labor is far cheaper. (Karen Pennar, "The Global Economy Needs Bridges -- Not Walls," Business Week, Aug. 2, 1993, 60.)


America - American Economy

The genius of the American system -- enormous flexibility -- has its price. At any given time the society may veer off, so intent on testing the limits of a principle that it loses sight of basic wisdom. [That] wisdom ... was overlooked amid the takeover mania of the Eighties. (Faltermayer, 1991, 70.)

The genius of the American system -- enormous flexibility -- has its price. At any given time the society may veer off, so intent on testing the limits of a principle that it loses sight of basic wisdom. [That] wisdom ... was overlooked amid the takeover mania of the Eighties. (Faltermayer, 1991, 70.)

America - American investment

Americans lately have consumed too much, saved too little, and seemed short-sighted about investing in the future. (Hampson, 1989, 46.)

For the U.S. to remain the world's No. 1 economic power, frets William Sterling of Merrill Lynch Economics in New York, "we've got to outinvest our major competitors, and we're not doing that." (Monroe W. Karmin, "Lean times loom on the factory floor," U.S. News & World Report, Nov. 20, 1989, 72.)

Appropriate Technologies

As John D. Rockefeller, III, write, "We have let technology become our master rather than our slave." The critics of the technological society included a few Luddites who would reject any technological change, but other critics took the view that it was not technology in general that was to blame, but rather our choice of technological options. They voted for an "appropriate technology."

Appropriate technologies [are] technologies tailored to fit the psychosocial and biophysical contexts in particular locations and periods. (Kevin W. Willoughby in William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Technology does not exist independently of society, nor is it the sole determinant of social progress. (William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Appropriate Technology - Human-Centered Automation

Assessing whether automating a given task will enhance a pilot's ability to fly an aircraft [is] a concept called human-centered automation. (Gary Stix, "Where the Pilot Meets the Machine," Scientific American, July 1991, 105.)

Automation - Selling the Automated Company

Success in business is not just a matter of the bottom line. Of course solvency and profitability are essential, but the intangibles are what make the difference: the character of the people you work with or deal with; the values they hold; the readiness of their smiles and their willingness to accommodate themselves to others' concerns.

A few years ago, when the MDS acquisition of Nordion International Inc. took effect, Nordion's employees were on strike. Not a happy beginning from anyone's point of view. Still, says MDS Chairman Wilf Lewitt, “we felt the people could really be trusted. When they came back after the strike, we made sure they were welcomed. And they got their full bonus that year.(“Relationships are crucial to MDS growth,” MDS Perspective, August 1997, www.mdsintl.com.)

Claude has had the experience of working in what he describes as “a cut‑throat atmosphere in the past. “It's a question of where a corporation places the emphasis. Some are marketing‑oriented, some profit‑driven. Some put too much emphasis on sales or the bottom line rather than on a harmonious organization.

We are building on our people's capacity to satisfy clients' needs, he says. “Our growth is based on what we can achieve in serving the customers with quality. If we do that, the rest comes.

The stories of MDS Harris and MDS Neo‑Pharm show that even as MDS expands geographically, technologically and in terms of people, it is possible to maintain the value system that has given the company its character and its ability to succeed in the past ‑ and that in turn, common values are an essential factor in the partnerships, acquisitions and other alliances through which the company will grow in the future. (“Satisfying clients' needs,” MDS Perspective, August 1997, www.mdsintl.com.)

Automation - Who Uses It?

Many [automation] vendors see signs of a new faith spreading in their customer base -- namely, that measured, well-planned factory automation is the key to salvation prosperity, and even survival in increasingly competitive U.S. and global markets.

It's a gospel that automation vendors have been preaching for a number of years. ...

Carmakers and their customers still account for an estimated 35% of all factory automation gear sold. ... Automation fervor is spreading to a broader base of nontraditional [76/7] U.S. customers, vendors say. The pharmaceutical industry, for example, is increasingly turning to vision-based systems for critical jobs in drug-label inspection, notes Gary Wegner, director of marketing and sales for Automatix Inc., a Billerica, Mass., vision vendor.

The electronics industry itself helped boost revenues for vision and inspection systems last year, as well as those of robot controllers. Some 15% to 20% of about $400 million in U.S. robit sales came in sophisticated, highly integrated robot/vision systems used in fine-pitch-packaging electronics assembly tasks, says Charles Henri-Mangin, president of Ceeris International Inc., an Old Lyme, Conn., consulting firm.

The food and beverage industry is also purposefully stepping to the factory automation plate. ... "there are probably more input/output points to be controlled in food and beverage than are controlled in some of our traditional industries." says Lane W. Kirkpatrick, corporate director of marketing fro The Foxboro Co. in Foxboro, Mass., a process-control house.

Other, more traditional market segments also showed strength in 1989, including paper making and energy-related fields, executives point out. ... Detroit's first- and second-tier suppliers ... are turning to automation to meet the automakers' tight standards for quality and just-in-time delivery. ...

Last year, some 60% of U.S. robot sales went to Detroit, against 55% in 1988 (down from 70% in the mid-1980s. (Wesley R. Iversen, "The Automation Gospel Gains Converts," Electronics, January 1990, 76-7.)

Automation - E-Tickets

On trips in which travelers want to use e‑tickets with more than one airline, the travel agent currently must issue one ticket for each airline. Also, in the event of a cancellation or other unexpected schedule change, travelers holding e‑tickets must get in line and have the airline they originally intended to fly print out a paper ticket. Travelers then bring the paper ticket to the new airline. (BTN, May 18, 1998, 31.)

Morse said that while it takes about two minutes to drive a normal ticket, it can take 5 to 10 minutes for an agent to run several e‑tickets in one PNR.

Jack Reynaert Jr. agreed. "This affects the agents' productivity:' said the travel manager for Troy, Mich.‑based Kelley Services. "Ifyou're out on United and back on Northwest on an e‑ticket, you have to drive two tickets. Our travel agents are complaining all the time about the extra work. To me, it's critical that we keep our agents as efficient as possibly, especially in light of the commission cuts.” (BTN, May 18, 1998, 31.)

A key issue when it comes to interlining [the practice of exchanging one airlines’ ticket for another airlines, in the event of late or cancelled flights, etc.] is that it requires the airlines to have the same standards for all of their internal accounting, customer service and reservations systems. Carriers are building on the standards established by the Air Transport Association and the International Air Transport Association. (BTN, May 18, 1998, 31.)

Automation - It Reduces Demand for Labour

When Charles Schwab & Co. Inc. next month drops an electronic expense reporting system into place, itwill join an elite and intimate circle of corporations that have solved the ultimate travel management puzzle: the rollout of an automated end‑to‑end travel solution. But even without the final piece of its paperless vision, and slashed its FedEx bills dramatically, as 82 percent of all tickets are now electronic, said director of corporate travel Bob Grant.

"In 1997, I added $1.9 million to the bottom line of the Charles Schwab Corp.," Grant said. The savings came from the "accidental commissions" sent to Schwab, which holds its own appointment from the Airlines Reporting Corp. The commissions are accidental as Grant negotiates all travel contracts on a net basis, and has succeeded in moving about 70 percent ofSchwab's domestic, and nearly 100 percent of its international, air travel to net fares. The resulting discounts range from 22 percent to 52 percent off applicable fares when any ticket is booked.

Nanotechnology could lead to dramatic reductions in the time required to move a product from the design phase to volume production. There might be no need for expensive, specialized tooling to be built before manufacture could begin. The designers of a new aircraft might see a working prototype within a few hours or days after their design is completed, and they could then test the prototype as a way of refining the design. Each one could be custom-built according to a different design, without the problem of nonstandard parts. (Jon Roland, "Nanotechnology: The promise and Peril of Ultratiny Machines," Futurist, March-April 1991, 31-2.)

Automation - It Cuts Costs

Before implementing its electronic travel strategy, Schwab hired an auditor to benchmark its costs against those of other companies in the San Francisco area. While others averaged between 32 and 34 cents a mile, Schwab's costs were 40 cents. Today, thanks to technology, Schwab pays just 20‑21 cents per mile.

Buoyed by the initial success of the program, Grant now is striving to drive up usage of the electronic system to 60 percent of all transactions.

"We've started to put messages out on our phone line saying the standard for booking travel is Travel Planner:' he said. Those who insist on calling the travel department to book reservations immediately hear a recording explaining that there is no waiting on Travel Planner. Call volume has dropped from a high of 350 calls a day to no more than 260, while the average duration of calls has shortened from over five minutes to about three. (Mary Ann McNulty, “Schwab Goes End to End,” BTN, 18 May 1998, 1 +32.)

As bookings through BTS rise, Grant plans to further reduce his reservation staff, redeploying the employees within the fastgrowing company. A year ago, Grant had 15 reservationists booking business travel, as well as some groups and meetings. Today, he has nine reservationists, bne full‑time information technology expert and a customer service manager. The last two reservationists were promoted within Schwab, with one moving into purchasing to spearhead the move to electronic processing. (Mary Ann McNulty, “Schwab Goes End to End,” BTN, 18 May 1998, 32.)

Automation - Difficulties in Implementation

Efforts to reengineer Schwab's travel, with its net air spend of about $12 million, began in 1995, when the brokerage firm issued a travel policy, garnered senior management support and negotiated preferred vendor contracts. It was then that Grant began looking for an automated end‑to‑end solution for booking, reporting and reimbursing travel. ...

This is the toughest piece of technology I’ve ever had my hands on. Our senior person in MIS looked at the diagram and said it's the largest endeavor he has seen since electronic brokerage."(Mary Ann McNulty, “Schwab Goes End to End,” BTN, 18 May 1998, 32.)

Automation - Automated Expense Reporting

The expense reporting software is connected to Sabre's computers in Tulsa, which collect the daily charge downloads from Diners Club and disperse them to employees via e‑mail. In addition, the system is connected to Schwab's computers, including the PeopleSoft enterprise business system it uses for accounting, About 200 Schwab travelers have been using the software since January and three have been working eight hours aday entering data to assimilate peak volume.

To prepare expense reports, employees open e‑mail messages that contain charge data to prepopulate the reports. They then verify the charges, add out‑ofpocket expenses and forward the expense report to a supervisor for approval. In the background, the software checks for policy compliance, verifying that tickets were purchased through Schwab Travel and were not exchanged, and that hotels billed were preferred properties. Policy violations pop up immediately, forcing employees to type in an explanation of why they went out of policy.

Employees then print the report and an accompanying bar coded transmittal sheet, attach re ceipts and send it all to account payable in a special window en velope. If the receipts don't arrive within 24 hours, accounting calls the traveler. No future reimbursements are issued until the receipts show up.

Supervisors can ask to see re ceipts, review details from charge forms, question expenses or ap prove them. The system sends e mail messages when reports an approved and again when theyart processed, with the latter detailing how much will be paid to Diners and how much will be transferred to the employee's primary bank account that day. Schwab pays Diners when it's convenient Grant doesn't expect to eliminate the jobs of the two T&E processors‑‑but neither does he expect to have to add staff as the company grows about 25 percent a year for the next few years. "The real gain is from service to employees:' he noted. Reimbursement funds will arrive within four days, instead of the average three weeks the process now takes.

As a paperless pioneer, what would Grant change if he had to do all this again? "There are days when I quite frankly wished that someone else did the pioneering. I might have waited for the technology. My perception was that this was all turnkey, but I was just fooling myself."

Still, in the end, he said, "the result is I have the best travel processing in the country and we'll continue to save money with it." Pete Stevens, director of marketing and business development for Sabre BTS, credits Schwab's aggressive embrace of technology with producing the dramatic returns. “If you’re just in there dabbling with only 5 percent going though electronic bookings, you’re not seeing the savings. But if you’re in there with 20 to 30 percent electronic, the numbers are really obvious.” (Mary Ann McNulty, “Schwab Goes End to End,” BTN, 18 May 1998, 32.)

Adapt or Die

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)

In today's sea of information, facilities that don't keep moving will sink, says this computer consultant. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Information management is a growth field in today's long‑term care ‑‑ so much so that facilities that don't grow with it put their survival at risk. Increased pressures from payment sources, government and management for more information make information systems mandatory for all nursing homes. Yet many facilities have yet to computerize ‑‑ and many of those that have are reluctant to confront the prospect of spending thousands of dollars more to upgrade to more capable systems.

This is understandable. Over‑reliance on Medicaid, the rise of managed care contracting for service at the lowest prices and the growth of competing levels of care, such as assisted living and home health care, have put nursing homes under financial pressure. Even so, as the nursing home industry moves from the cottage industry of the past to being a major player in networks of care, information is the key to success. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Automation - Spread of Online Systems

Over the past three years ... fresh ideas surfaced with new technology entrants; Internet, intranet, and extranet entered the lexicon; and technology associations, newsletters, and conferences proliferated. (Kevin P. Mitchell, president of Business Travel Contractors Corporation, "Distribution Reform Stalls," Business Travel News, 9 June 1996, 10.)

Competition and investment in the world’s biggest passenger market are welcome – but only if done in a way that gives U.S. carriers equal opportunities in foreign markets. ... Frightened by the success of tough U.S. carriers on their turf, [France, Germany and Japan] have taken protectionist positions to shelter their airlines. (Andrea Rothman, “U.S. to World: Airline Deals Hinge on Open Skies,” Business Week, 11 Jan. 1993, 46.)

[Owner Wayne] Fox [works] in the [Process One] photo lab, processing film with four of his six employees. ... With a steady business, Fox soon found himself spending too much time and money on accounting functions, including payroll. With revenues of $300,000 Fox knew he needed a computerized system to manage his sales, inventory, accounting and payroll functions. ...

Fox evaluated the ProphetLine software, as well as the POS hardware[Tom] Kirkham recommended. Satisfied that the system would streamline his bookkeeping functions, Fox spent approximately $5,000 to have the system installed. ...

[Windows‑based] ProphetLine software features a core System Manager module that provides all cash register functions, including sales and returns. The system also tracks retail inventory, produces bar‑code labels, includes a time and attendance feature, accounts payable and receivable, and payroll. ...

Since installing the system, Fox has been able to eliminate two full‑time bookkeeping positions, spend more time in the photo lab, and better track his inventory and sales. Fox is able to track customers by name and purchase. He uses this information to create customized mailings to advertise studio portrait specials, for example, ProphetLine's cost savings and functionality have freed up Wayne Fox's time to concentrate on developing his business. He's building a custom darkroom for custom black and white: portraits. This will expand Process One's services for professional photographers and add to the studio's capabilities. (Lisa Strunin, “Photo Processing Lab is a Picture of Efficiency,” Business Systems Magazine, March 1998.)

As we near the 20th anniversary of U.S. airline deregulation and the birth of modern business travel mansgement, we recognize that the consolidation and financial restructuring of the past year are in effect the growing pains of a young industry entering adulthood. (David Meyer, “Consulting the Charts,” BTN, 25 May 1998, 3.)

Job elimination and downsizing dropped to their lowest levels of the 1990s as major U.S. companies created twice as many jobs as they cut in the twelve months ending in June 1997, according to the American Management Association's annual mid‑year survey of its member companies.

Nearly three‑quarters (73%) of the 1,168 firms surveyed reported creating new jobs, up from 68 percent in the previous 12 months, while 41 percent reported job cuts, down from the previous 49 percent. Actual “downsizing,” defined as a net decrease in the workforce, dropped to 19 percent from 28 percent in the previous period and an average 30 percent in the five years from 1992 through 1996.

On average, surveyed firms created 110 new jobs while eliminating 57, and grew their payrolls by 6.9%, compared with 6.1% in the previous twelve months. More than half (54%) saw a net workforce increase in the twelve month period.

We're seeing the payoff after a decade of pain,” said Eric Rolfe Greenberg, AMA's director of management studies. “The same forces that were costing jobs in earlier years, such as restructuring, reengineering, and automation, are now creating jobs that demand high skill levels. The people going out the door don't have them, the people coming in do.” ...

Salaried professionals and technicians took 22 percent of the newly created jobs, managers and supervisors 16 percent. In contrast, of the jobs eliminated only 14 percent belonged to salaried professionals and technicians, while 32 percent were held by managers or supervisors. For the first time since 1992, a majority of the jobs eliminated belonged to hourly wage‑earners (55%), but 62 percent of the newly created jobs were hourly. (“Downsizing Tumbles as Major U.S. Firms Opt for Growth, American Management Association Survey,” Oct. 22, 1997 Press Release, AMA Website. New York: AMA, 1997.)

Because of concurrent job creation, job elimination is not synonymous with downsizing. (“AMA 1997 Survey: Summary of Key Findings,” American Management Association Press Release. AMA Website. New York: AMA, 1997.)

Job elimination tends to be structural; job creation is largely (but by no means exclusively) market‑driven and tied to the business cycle. “Increased market demand” by far outstrips all other rationales cited by companies creating jobs. (“AMA 1997 Survey: Summary of Key Findings,” American Management Association Press Release, AMA Website. New York: AMA, 1997.)

Spawning some controversy along the way, automated underwriting is nonetheless rapidly enveloping the mortgage industry today. Although a variety of systems are available from different vendors, taking center stage in terms of both usage and controversy are the systems offered by the secondary market agencies, Fannie Mae (Desktop Underwriter(TM)) and Freddie Mac (Loan Prospector(R)).

Because they control most of the market for conforming loans, Fannie Mae and Freddie Mac are in a position to play a dominant role in automated underwriting technology. And, despite assurances they are doing nothing more than serving their customers' needs by offering better technology tools, clearly more is at stake than the mere success of a technology product for these two industry leaders. ... In response to these criticisms, the executives spearheading the AU efforts at both agencies said their systems do reduce costs and otherwise add value for lenders. (Doug Foster, “The Debate over Automated Underwriting,” Mortgage Banking, May 1997.)

It's clear that automated underwriting is here to stay. (Doug Foster, “The Debate over Automated Underwriting,” Mortgage Banking, May 1997.)

To realize the maximum benefit of an AU system in terms of cost savings and customer service, it should be used at, or as close as possible to, the point‑of‑sale. (Doug Foster, “The Debate over Automated Underwriting,” Mortgage Banking, May 1997.)

Further improvements will likely come from continued pressure by the industry on the agencies to cooperate in keeping innovation on course to benefit the American homeowner. Obviously the willingness of the agencies to do what's in the best interest of homeowners in terms of lowering borrower costs could prove the critical factor. (Doug Foster, “The Debate over Automated Underwriting,” Mortgage Banking, May 1997.)

Further improvements will likely come from continued pressure by the industry on the agencies to cooperate in keeping innovation on course to benefit the American homeowner. Obviously the willingness of the agencies to do what's in the best interest of homeowners in terms of lowering borrower costs could prove the critical factor. (Doug Foster, “The Debate over Automated Underwriting,” Mortgage Banking, May 1997.)

ADPICS

The Advanced Purchasing Inventory Control System (ADPICS) addresses the purchasing, receiving, and inventory control requirements of government and commercial environments.

The system addresses processing requirements in the functional areas of:

* requisition processing
* bid processing
* purchasing
* receiving

The inventory management and control module is being converted to the HP environment.

ADPICS supports the full appropriation accounting cycle by recognizing the following relationships:

* purchase order/liquidation of pre‑encumbrance and creation of the encumbrance
* receiving report/liquidation of the encumbrance

ADPICS is an on‑line, real‑time system, and integrates with Peat Marwick financial systems or other accounting software. ADPICS's technologically sophisticated design features include:

* novice or direct access mode
* help screens
* extensive inquiry capability
* batch or on‑line update options 	

(“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

BPREP/Advanced BPREP

The Advanced Budget Preparation System (BPREP) provides automated assistance to the budget preparation function by allowing originating agencies/departments and budget analysts to enter detailed budget requests, to manipulate and adjust them as successive reviews are completed, and to receive summary‑level reports based upon detailed departmental requests.

Advanced BPREP provides an on‑line, real‑time capability to formulate, review, and approve agency and department budgets. The system recognizes and supports budgets for grants, capital projects, and operation agencies for expenditures and revenues. Extensive security controls are included.

Advanced BPREP may be used as an integral part of the ONLINE FAMIS core financial management system, or operated as an independent subsystem. The budget preparation subsystem is intended to provide an automated means of assisting the budget formulation and review process. It includes a generalized report writer capability to provide the means to quickly produce special reports or to change report formats for special presentation purposes. The system automatically receives updated information from and transfers approved budgets into ONLINE FAMIS, minimizing extensive clerical efforts normally encountered. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

FAACS

FAACS is an on‑line system that supports:

* government accounting 
* asset management
* control needs for federal, state, and local governments
* public schools
* associations
* nonprofit entities

FAACS is the repository for management information collected about fixed assets, including land, building, improvements, equipment, and construction in progress. This information is updated for acquisition and disposition, and is available via numerous specialized reports, including GAAFR schedules.

FAACS includes:

* capabilities for stewardship responsibility
* centralized management 
* maintenance information including that for leased assets
* controls over interagency and departmental transfers
* surplus property
* indirect cost calculation
* Federal property management compliance
* program performance evaluation
* planning and budgeting for assets
* physical inventory reporting 

FAACS supports split‑funded asset accounting, calculates and records depreciation, tracks both capitalized and non‑capitalized assets for inventory purposes. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

KPMG Peat Marwick LLP

Performance Accounting is KPMG's Client/server financial management information system for state and local governments.

System functions encompass:

* General Ledger
* Budgetary Control
* Expenditures
* Disbursements
* Revenues
* Receipts
* Encumbrances
* Project
* Grant
* Cash Management and Performance

The system is fully integrated and feature on‑line, real‑time processing. Performance Accounting has an open architecture solution that has been designed from the ground‑up to take full advantage of new and emerging technologies. The comprehensive functionality, flexibility, and technologies embodied in the Performance Series will meet information and processing needs now and in the future. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

ONLINE FAMIS

ONLINE FAMIS provides:

* accounting and financial management for federal, state, and local governments
* public schools
* associations
* nonprofit entities 

ONLINE FAMIS is a comprehensive, fully integrated, financial management system that uses advances online, real‑time information processing technology.

ONLINE FAMIS includes:

* General and subsidiary ledger accounting
* Appropriation accounting and variable budget control
* Budget preparation and planning
* Pre‑encumbrance, encumbrance, expenditure and revenue accounting
* Purchase order writer
* Accounts Payable
* Check writing and reconciliation
* Multi‑year capital projects and grants accounting
* Program and managerial cost accounting
* Cash management including portfolio tracking and interest allocation
* Accounts Receivable and billing
* Fixed assets
* Performance measurement data
* Extensive financial reporting
* Report writer capabilities

ONLINE FAMIS was developed as a transferable fund accounting system, designed to minimize the software development requirements of system implementation. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Performance

Performance Purchasing is KPMG's comprehensive system of:

* materials management encompassing requisition
* bid purchase order/contact management
* receiving Accounts Payable
* inventory processing

The system is fully integrated and features online, real‑time processing. Performance Purchasing has an open architecture solution that has been designed from the ground‑up to take full advantage of new and emerging technologies. The comprehensive functionality, flexibility, and technologies embodied in the Performance Series will meet information and processing needs now and in the future. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Performance Asset Management

Performance Asset Management is KPMG's system that supports:

* accounting
* management and control over capital and controllable assets

The system is fully integrated and features online, real‑time processing. Performance Asset Management has an open architecture solution that has been designed from the ground‑up to take full advantage of new and emerging technologies. The comprehensive functionality, flexibility, and technologies embodied in the Performance Series will meet information and processing needs now and in the future. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Performance Budgeting

Performance Budgeting is KPMG's flexible tool supporting development of operating and capital budgets, detailed position scheduling, what if? modeling, and budget publication integrating financial, narrative and graphical data. Performance Budgeting may easily be integrated with other desktop solutions for budget analysis and manipulation. The system is fully integrated and features online, real‑time processing. Performance Budgeting has an open architecture solution that has been designed from the ground‑up to take full advantage of new and emerging technologies. The comprehensive functionality, flexibility, and technologies embodied in the Performance Series will meet information and processing needs now and in the future. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Performance Purchasing

Performance Purchasing is KPMG's comprehensive system of materials management encompassing requisition, bid, purchase order/contract management, receiving, Accounts Payable and inventory processing. The system is fully integrated and features online, real‑time processing. Performance Purchasing has an open architecture solution that has been designed from the ground‑up to take full advantage of new and emerging technologies. The comprehensive functionality, flexibility, and technologies embodied in the Performance Series will meet information and processing needs now and in the future. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Performance Series C/S Financial Mgt.System

The Performance Series is KPMG's proprietary suite of financial management information systems for Public services. Performance Series includes full functionality for:

* Accounting
* Purchasing
* Asset Management
* Cost Allocation
* Labor Distribution
* Budgeting

Also, it is supported by a comprehensive executive information management/data warehousing system. The Performance Series is the latest offering in KPMG's proprietary suite of products, and represents over 20 years of experience in Financial Management applications for government users. (“HP Channel Partner Solutions Catalog for the Americas: KPMG Peat Marwick,” KPMG Peat Marwick Website, July 1998.)

Counsel to workers: Change or die

Careers come and go. Jobs change. This is nothing new. It's just happening far faster than ever before. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., frontispiece.)

Work is going global. We're entering the Information Age. The economy is shifting more and more towards services, and toward knowledge work. Before long, top management absolutely won't be able to run things the old way, even if it deperately wants to. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

New technologies -- especially computers and telecommunications -- have already created intense, worldwide competition for business. Soon, competitoion for your very own job could come from practically anywhere on earth. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Careers have already quit working liken they used to. That's not really anybody's fault. But employees and organizations are very much at fault if they, too, don't change in order to adapt. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

It does no good whatsoever to complain or be bitter about what's happening. In fact, such behavior can only do us harm. We waste precious energy if we resist, get angry, or give in to grief over all that's being lost. We jeopardize our future if we cling to old assumptions and expectations about how careers should operate.

Frankly, the world doesn't care about our opnions. Or our feelings. The world rewards only those of us who catch on to what's happening, who invest our energy in finding and seizing the opportunities brought about by change. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. (Dallas, TX: Pritchett & Associates, introduction.)

Change always comes bearing gifts. Considering the scope and speed of change these days, there will be precious gifts -- many priceless opportunities -- for those of us who play by the new rules, position ourselves right, and take personal responsibility for our future. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Your organization will keep reshaping itself, shoifting and flexing to fit our rapidly changing workd. That's the only way it can hope to survive in this fiercely competitive environment. Look for it to restructure, outsource, downize, subcontract, and form new alliances.

You can also expect flexible ways of working. Duties will be constantly realigned, Short-lived assignments will be common. Maybe you'll work on a contract basis, or spedn time on several project teams. You might even end up working for more than one "employer" at a time. You'll probably have a constantly new set of coworkers, more new bosses, even new careers.

You're not going to like some of this. Chance are, nobody will like it all. But that's neither here nor there. Question is, will you get with the program anyhow? (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

You need to know that resistance to change is almost always a dead-end street. The career opportunities come when you align immediately with new organizational needs and realities. When you're light on your feet. When you show high capacity for adjustment. Organizations want people who adapt fast -- not those who resist or psychologically "unplug." (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

(Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p..)

Technology has eliminated many of the jobs our fathers had, and it may eliminate ours. ... Companies and managers, countries and their peoples face an increasing task of self-renewal - increasing because the pace of technological change continues to increase. We must all become better innovators as a result - inventing new products and reinventing our own skills and jobs as well. (Waterman in Foster, 1986, 15.)


Chapter 8. Business Climate

The Anything-Goes 1980s

The anything-goes 1980s. (Reibstein, 1991, 19.)

"The roaring '80s [was a] high-flying time of corporate mergers and acquisitions, Henry Kravis and leveraged buyouts, Michael Milken and junk bonds. Money flowed freely. No deal was too big to finance. All you had to do was borrow. Debt was glorious." (Reibstein and Friday, 1990, 53.)

The financial civil war that swept across America in the past decade was a ripsnorting string of shoot-'em-ups like nothing ever seen on Wall Street or Main Street. Withering volleys of money shot back and forth as insurgents stormed one entrenched corporate position after another. Counting friendly and hostile deals, more than a third of the companies in the Fortune 500 industrials were swallowed up by other concerns or went private. ... Buyers shelled out an astounding $1.5 trillion, plus billions more in defensive maneuvers. ... Did they create new wealth for the whole economy...? ... No. (Faltermayer, 1991, 58.)

Would-be-masters of the universe luxuriated for a time on their slice of an estimated $60 billion in fees for dealmakers, lawyers, and commercial banks. (Faltermayer, 1991, 58.)

The symbolic sound of the early Nineties, audible above the groans of wounded corporations, is the vulture investor's flapping wings. (Faltermayer, 1991, 58.)

Automation - It Reduces Labour Costs

Paper patient records are proving increasingly inadequate to meet the modern information needs of group practices. Computerizing patient records can improve physician access to patient information and thereby also improve patient care and outcomes management. By investing in a computerized patient record system, practices can optimize revenues by saving labor costs associated with record retrieval, photocopying, filing, and other processes. (Nelson, Rosemarie. “Computerized Patient Records Improve Efficiency And Patient Care,” Healthcare Financial Management, April 1998, 86.)

Group practices are finding that paper patient records are failing to meet their advanced information needs. Paper charts are an inefficient medium for retrieving and transferring information, are labor‑intensive to maintain, and require a large amount of storage space. And it is difficult to turn the data in paper records into meaningful information easily. Physicians and practice managers, therefore, are turning to computerized patient records to improve access to patient information, provide better care, and improve their outcomes management efforts. (Nelson, Rosemarie. “Computerized Patient Records Improve Efficiency And Patient Care,” Healthcare Financial Management, April 1998, 86.)

Bypassing the Middleman - The Airline-Owned Computerized Reservations Systems

As long as the CRSs are owned by airlines, there will be no end to steps they can take to disadvantage their competitors. (Robert Moss, president of Travel Intelligence, “Solutions for the CRS Parity Problem,” Business Travel News, 14 October 1996, 10.)

CRS bypass has been on everyone’s mind, but until now it’s been all talk,” [TravelNet president Randall] Malin said. “Now it has become a reality. This is a big step, but it’s only a first step.” (Cheryl Rosen, “Hotels to Bypass CRS,” Business Travel News, 25 Nov. 1996, 36.)

Capital Spending

"If it takes money to make money, then corporate America is heading for the poorhouse. At a time when Japan and West Germany are pumping record sums into new factories and state-of-the-art equipment, U.S. industries intend to scale back dramatically on capital spending. While plunging profits leave managers little choice, their actions threaten to erode the nation's future competitiveness, perhaps permanently." ("Lean Times," 1989, 72.)

Change

The 1990s will be the first decade of true global competition and global economic warfare.... Tremendous change -- hyperchange -- is the only certainty. (Rock, 1990, 71.)

Competitive Edge

What is GE Capital's edge? ... Most important is a culture that successfully blends an entrepreneurial spirit with the hard-driving and intensely competitive focus of its parent. (Tim Smart, "G.E.'s Money Machine," Business Week, March 8, 1993, 63.)

The competitive edge is a state of mind where you're always trying to outsmart the other guy. (Auerbach, 1991, 34.)

I don't care if you're selling baseball tickets or shoes, a competitive edge is the name of the game today. (Auerbach, 1991, 29.)

Computers - Increasing Power

"The increasing power of work stations and PCs has those two classes eating into functions traditionally served by minis and sometimes mainframes." (Curran, 1990A, 58.)

The rate at which semiconductors are going into [a widening profusion of products] has just skyrocketed. (Jean-Philippe Dauvin in Robert D. Hof, “Silicon Goes from Peak to Peak,” Business Week, 8 Jan. 1996, 95.)

Computers - Open Systems

The computer industry seems to have adopted a new attitude. No longer are companies seeking to grow based on a strategy of proprietary technology and account control. Instead, it's a strategy based on adding to what's already out there. And the real beneficiary is the user. (Anon, "Editorial: The Real Reason," 1991, 14.)

Consumers

The fate of the upturn has always been in the hands of the consumers. (James C. Cooper and Kathleen Madigan. 1991. "The Coup Showed Just How Fragile the Recovery Really Is," Business Week, September 2, 17.)

Consumers - Consumer Trauma

Debt-burdened consumers are staying out of stores. ... Shoppers have remained at home because they are uncertain about their jobs and the overall state of the economy. A survey has revealed that two thirds of Americans think the country is on the wrong track. The latest data showing a continued rise in claims for unemployment benefits have reinforced these negative feelings. (Susan Dentzer, "Uncooperative Patient," U.S. News & World Report, October 21, 1991, 62.)

Consumption as a Way of Life - See also Materialism

"Our enormously productive economy ... demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our ego satisfaction, in consumption. We need things consumed, burned up, worn out, replaced, and discarded at an ever-increasing rate." (Retailing analyst Victor Lebow after WWII in Durning, 1991, 73.)

"Psychological data from several nations confirm that the satisfaction derived from money does not come from simply having it. It comes from having more of it than others do and from having more this year than last. Thus, the bulk of survey data reveals that the upper classes in any society are more satisfied with their lives than the lower classes are, but they are no more satisfied than the upper classes of much poorer countries -- nor than the upper classes were in the less-affluent past.

"More striking, perhaps, most psychological data show that the main determinants of happiness in life are not related to consumption at all: Prominent among them are satisfaction with work, leisure, and friendships. Indeed, in a comprehensive inquiry into the relationship between affluence and satsifaction, social commentator Jonathan Freedman notes, "Above the poverty level, the relationship between income and happiness is remarkably small." (Durning, 1991, 73.)

Customer Service Automation

[A Yankee Group] survey asked respondents to point to the functional areas that they anticipate would be the most impacted by systems integration projects over the next three years. Sales was number one, followed by customer service. This is a significant reversal of priorities from the past three years. The study found that while IT systems for customer service had led the list of areas most benefited by systems integration projects since 1995, sales force automation projects had followed in a distant fifth place. The confluence of two factors, the push for global sales growth and the introduction of robust technology‑enabled selling tools, have brought about the change. (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)

Diversification

The diversification frenzy of the 1970s precipitated the corporate raids of the '80s, [A. David Silver] explains [in The Inside Raider]. (Frank Mixson, "Books Worth a Look," Entrepreneur, July 1990, 68.)

Downsizing - Its Full Significance

We are witnessing what may be the permanent downsizing of the human work force. (“The Nature of Work in the Twenty-First Century: Certain Uncertainties,” Business Horizons, Nov./Dec. 1993.)

In short, jobs are likely to be increasingly scarce‑‑unless the nation decides otherwise. Because a trend is not a law, we can use public policy to deliberately expand job availability. (“The Nature of Work in the Twenty-First Century: Certain Uncertainties,” Business Horizons, Nov./Dec. 1993.)

Downzising - Middle Management - See Middle Management - Downsizing

Downsizing - Net Downsizing Down

Job elimination and downsizing dropped to their lowest levels of the 1990s as major U.S. companies created twice as many jobs as they cut in the twelve months ending in June 1997, according to the American Management Association's annual mid‑year survey of its member companies.

Nearly three‑quarters (73%) of the 1,168 firms surveyed reported creating new jobs, up from 68 percent in the previous 12 months, while 41 percent reported job cuts, down from the previous 49 percent. Actual "downsizing," defined as a net decrease in the workforce, dropped to 19 percent from 28 percent in the previous period and an average 30 percent in the five years from 1992 through 1996.

On average, surveyed firms created 110 new jobs while eliminating 57, and grew their payrolls by 6.9%, compared with 6.1% in the previous twelve months. More than half (54%) saw a net workforce increase in the twelve month period.

"We're seeing the payoff after a decade of pain," said Eric Rolfe Greenberg, AMA's director of management studies. "The same forces that were costing jobs in earlier years, such as restructuring, reengineering, and automation, are now creating jobs that demand high skill levels. The people going out the door don't have them, the people coming in do." (“Job Cuts, Downsizing Tumble as Major U.S. Firms Opt for Growth, Says American Management Association Survey,” American Management Association webpage, May 1998.)

Downsizing - Severance Benefits Eliminated

The share of companies offering outplacement assistance to departing workers dropped for the third consecutive year, to 69 percent from 70 percent a year ago and from 84% at its high‑water mark in 1994. The share offering outplacement to all departing workers, as opposed to selected job categories, fell to 31 percent from 38 percent in 1996 and 44 percent in 1995.

Other forms of assistance were also down, with 43 percent offering extended severance pay compared with 46 percent a year ago, and 38 percent offering extended health coverage compared with 39 percent in 1996.

Use of voluntary separation plans also dropped to 39 percent from 40 percent previously, and early retirement incentives fell to 30 percent from 34 percent. (“Job Cuts, Downsizing Tumble as Major U.S. Firms Opt for Growth, Says American Management Association Survey,” American Management Association webpage, May 1998.)

Downsizing - Its Effectiveness Assessed

Sixty‑one percent of surveyed companies have undergone at least one round of job cuts in the 1990s, and 40 percent have cut jobs in three or more calendar years since 1990. The more frequent the job cuts, the survey found, the better the results in three key areas: worker productivity, operating profits, and shareholder value.

"This is not to say 'The deeper the cuts, the more likely the improvements,'" said [Eric Rolfe Greenberg, AMA's director of management studies]. "Companies actually downsizing are somewhat more likely than others to report higher profits, but they're also more likely to report lower ones.

"What we find instead is that a trimmer is more effective than a buzz‑saw. There's an advantage to continuous, incremental change. Naturally, training is a key element in this. Surprisingly, simple cost‑cutting is not." (“Job Cuts, Downsizing Tumble as Major U.S. Firms Opt for Growth, Says American Management Association Survey,” American Management Association webpage, May 1998.)

Downsizing

You hear a rumor A General Electric Co. plant in the Midwest is about to close its doors and move its operations south of the border. You talk to a friend: Her brother turned down ~T&T's buyout offer, only to be faced with immediate dismissal. You consider I your future: A career change might be nice, but not an involuntary one. So you rein in spending and ramp up savings, just to be safe.

This is not your father's economy.

Instead, it has turned into a high‑wire act for everyone‑from the blue‑collar worker who's eking out $5 an hour plucking chickens to the bank teller whose job is being cut in a merger to the midlevel executive who's now working out of his home as a consultant. It is a story that can’t be told by the numbers, because the numbers at times are misleading: 8 million jobs created in four years, the unemployment rate at 5.8%, inflation down to 2.7%, corporate profits on a fouryear roll, and four years of economic recovery under our belts (page 52). "All the economic indicators are up...except mine," says Paul J. Szilagyi, 50, an unemployed North Miami Beach resident with a PhD in chemistry.

It's not just the unemployed like Szilagyi who are experiencing some cognitive dissonance these days. Real wages have been stagnant for most of the past two decades. The distribution of income among Americans has become more unequal over the same period. For most Americans, the workplace has become a far more capricious place. During the past decade, Corporate America has restructured, downsized, right-sized, and re-engineered millions of people out of their jobs while putting the squeeze on the wages of remaining workers. At the same time, top executives promised that the payoff would come – first in higher productivity and then, labor’s due, in higher wages.

It has been like waiting for Godot. (Karen Pennar, “Economic Anxiety,” Business Week, 11 March 1996, 50.)

The restructuring of Corporate America has carried enormous social costs. Nitin Nohria, a professor at the Harvard business school, tracked the changes that engulfed 100 of America's largest companies -‑ "symbolic markers of our well-being” -- from 1978 to the present. He found that on a net basis, 22% of the workforce of these companies, or 3 million workers, was laid off during the period, and 77% of all layoffs involved white‑collar workers. (Karen Pennar, “Economic Anxiety,” Business Week, 11 March 1996, 50.)

Between 1979 and 1993, the U.S. lost 36 million private sector jobs and 454,000 public sector jobs. This is not normal retrenchment, says KPMG. (Doug Ward, “Will True Value in the Coming Milennium Be for Those Who Can Pay?” Vancouver Sun, 25 April 1998, B10.)

The cutbacks continue even during good years and among organizations that are doing well, and the layoffs are permanent.” (KPMG report, Transformation to the 21st Century quoted in Doug Ward, “Will True Value in the Coming Milennium Be for Those Who Can Pay?” Vancouver Sun, 25 April 1998, B10.)

For many companies evolving their way toward 2000, a big part of the [search for doing things a better way] is to get smaller, or to stay small from the outset. Look at the numbers: IBM now employs 302,000 people, down from 406,000 in 1985; Digital Equipment, 98,000, down from 126,000 in 1989. But then these two old‑line computer companies compete against the likes of Apple, with 15,100 employees, Microsoft, with 13,800, and Novell, with 3,500, each of whose market capitalization ‑‑ the total value of its outstanding stock -- exceeds Digital's. AT&T, down to 312,000 people, recently saw the future and sought a piece of it, in the form of a one‑third interest in McCaw Cellular, which employs5,000.

Note that all these companies, the relatively small and the getting‑smaller, are in industries central to the new computational infrastructure ‑‑ what can only be seen as growth industries. If you want to gaze at employment prospects further out on the technology horizon, consider Genentech, the largest biotechnology company. It employs 2,100.

Unfair, the argument might come back: In comparing IBM with an Apple or a Microsoft you're comparing companies at very different stages of corporate development. The younger outfits, as they mature, will surely add lots more employees.

If they do, they will be bucking the trend. Research by professors Erik Brynjolfsson and Thomas W. Malone of MIT's Sloan School indicates that while the average number of employees per company increased until the 1970s, it has been decreasing since then, particularly in manufacturing. (Walter Kiechel III, “How Will We Work in the Year 2000,” Fortune, 17 May 1993, 39.)

For more than a year critics of General Motors Corp. have pointed to its soaring costs and overcapacity. Now the gian auto maker is ready to begin slimming down. Observers calculate it will shut four or more of its 34 North American car and truck assembly plants next year, idling as many as 20,000 workers. More assembly plants will probably be shuttered in 1988, and several of the company's in-house parts-making facilities are on the block. ... Bloated operating costs have made GM Detroit's costliest auto producer: It spends as much as $500 more to build a car than does Chrysler Corp. Analysts applaud GM's impending plant cutbacks as proof that the company is finally acting to reduce its costs. ... Any GM closings will produce huge layoffs, since an average assembly plant employs 4,000 to 5,000 workers. Such reductions will come in addition to the company's efforts to trim 25% of its white-collar work force by 1990. Analysts say it could cost GM as much as several hundred million dollars to close a single plant. (William J. Hampton,"Cutbacks at GM: No Longer If, But When and Where," Business Week, 10 November 1986, 44.)

If Chrysler could become the first U.S. company in decades to make a profitable subcompact, ... it could prove that American carmakers, in toe-to-toe combat, can outmuscle the Japanese. [head of Chrysler's small-car team Robert P.] Marcell uttered what became his team's rallying cry: "If we dare to be different, we could be the reason the U.S. auto industry survives. We could be the reason our kids anbd grandkids don't end up in fast-food service." (David Woodruff, "Chrysler's Neon," Business Week, 3 May 1993, 116.)

We are witnessing what may be the permanent downsizing of the human work force. (“The Nature of Work in the Twenty-First Century: Certain Uncertainties,” Business Horizons, Nov./Dec. 1993.)

In short, jobs are likely to be increasingly scarce‑‑unless the nation decides otherwise. Because a trend is not a law, we can use public policy to deliberately expand job availability. (“The Nature of Work in the Twenty-First Century: Certain Uncertainties,” Business Horizons, Nov./Dec. 1993.)

It comes down to this: I get up every morning and work all day whether I get paid for it or not. I find the money comes easier to me the less I pursue it, so I step lightly. My survival on the material plane is certainly not assured, at least not by money. But I need it and use it, as you do, to nourish myself. We=ve all got to eat. (Raymond Mungo, AConfessions of a New Age Businessman [extract],@ New Age Journal, Jan./Feb. 1990, 39.)

America is swallowing up and absorbing the traditional Eastern techniqgues of transformation, because only these are strong enough to humanize its technology. (William Irwin Thompson, AThe Birth of a New Age [extract],@ New Age Jorunal, Jan./Feb. 1990, 39.)

The essence of corporate social responsibility is a promise Ato do business in a way that preserves or enhances and does not harm@ the community, the environment and the economy in which the company operates, the [Canadian Business for Social Responsibility] explains. (Dawn Bennett, AFor Company and Community, Harvest from Corporate Moneytree is Rewarding,@ Vancouver Sun, 9 May 1998, A23.)

The worker of the future will have more responsibility for, and control over, his work life and will be dealing with potentially intimidating technologies. (Ira P. Krepchin, AThe Human Side of Competitiveness,@ Modern Materials Handling, Februart 1988, 64.)

Technological unemployment [means] people losing their livelihoods to machines. (Futurist, Jan./Feb. 1991, 35.)

Empirical Materialism

"One of the most common stereotypes about the United States is its materialism. Viewed in the context of the value system presented here, materialism is less a value per se than an optimistic assertion of two value premises (mastery over material nature and the perfectibility of man) that have operated in a favorable environment. What foreign observers may call materialism, with derogatory or envious innuendos, is to the American a success that carries the moral connotation of "rightness" - of a system that proves itself or, as Americans would say with complete consistency, that 'works.'" (Du Bois, 1955, 12-3.)

Without scientific progress the national health would deteriorate; ... we could not hope for improvement in our standard of living or for an increased number of jobs for our citizens; and ... we could not have maintained out liberties against tyranny. (U.S. Presidential Science Adviser Vancevar Bush [1945] in Jaroff, 1991, 36.)

"Reality is analyzed on a perceptual level; it is divided into odors, sounds, tastes, etc." (White, 1958, 28.)

No culture could survive if its arts and crafts, its weapons and economic pursuits were based on mystical, non-empirical conceptions and doctrines. When human culture is approached from the pragmatic, technological side, it is found that primitive man is capable of exact observation, of sound generalizations and of logical reasoning in all those matters which affect his normal activities and are at the basis of his production. (Malinowski, 1935, 634.)

"Everlasting life? ... No, but I do believe in the NBA playoffs!" (Mareltter cartoon of guru in meditative posture, talking to man who has climbed a mountain to speak to him, in Business Week, June 3, 1991, 38.)

Employment Trends

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May.

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ...

In fact, it seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs than there were when the recession started in July, 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals - excluding the technical and sales people whom the BLS [Bureau of Labor Statistics] lumps into its white-collar category - and you actually find 400,000 more such jobs today. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

A similar trend holds true for unemployment. The jobless rate for production workers hit 9% in September [1991], up from 7.1% at the start of the downturn. White-collar unemployment, which historically tends to be lower, started at 3.2% and reached 4% last month. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Employment Trends - American Muscle

More than 6.3 million people have found work during the recovery, and unemployment has tumbled from 10.7% to 7.5%. ... The U.S. has managed to generate a total of 13 million new jobs, or a 14% increase. Western Europe, by contrast, has lost some 3 million jobs during the same period, while Japan, for all its competitive might, has added 5.6 million positions for a 9% gain. Manfred Wegner, former chief economist of the European Community, calls it simply "the American miracle."

To be sure, joblessness remains a serious and painful U.S. blight. More than 8 million Americans are still out of work. Moreover, some critics charge that the American job surge, which has been highlighted by the creation of nearly 2 million new fast-food and other restaurant positions, is turning the U.S. into a nation of hamburger helpers at the expense of jobs in the basic industries. John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 44.

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Employment Trends - Manufacturing Sector - See Manufacturing Sector - Employment Trends

Employment Trends - Service Sector - See Service Sector - Employment Trends

Employment Trends - Middle Management - See Middle Management - Employment Trends

Employment Trends - Outsourcing to Consultants

Companies are often using outside consultants, many of whom were laid off earlier, to lower their costs. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Employment Trends - Increase in Temporary Staff

Even when companies have work that needs to be done, they often use temporary workers to avoid paying the cost of benefits. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Over the last year, [U.S.] employment by temporary agencies has soared by a staggering 240,000. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Endangered Occupations - The Corporate Travel Agent - Advent of Automated Travel Systems

Unisys Corp. this month will officially launch its Unisys Travel Alliance Services, an end-to-end solution for agencies and corporate travel departments that includes automated booking, data warehousing and reporting, back office accounting and expense reporting processing. (Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

Studies Unisys has conducted with American Express indicate that companies can lower booking costs by 30 percent by moving to automated systems. ((Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News. 8 Dec. 1997, 47.)

Every single RFP today asks, "What is your expense reporting product?" (Laura Lanbe, manager of technology solutions for BRI Americas in Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

For Thomson [Consumer Electronics], the choice of the Worldspan system comes almost three years after [travel manager Cindy] Heston first began looking into travel booking systems, begun after Sabre first announced it would be developing a system at the 1995 NBTA conference. Intrigued, Heston approached Worldspan and signed on for Travel Shopper, an e-mail based, off-the-shelf system developed by the CRS in the '80s. A year later, Worldspan "started seriously looking a building a product and putting programmers to work on it," Heston said. By November 1995, thanks to an incentive program that rewarded users with free hotel room nights and other prizes, Heston had moved 105 travel arrangers -- and 10-15 percent of Thomson's domestic travel -- off the phones and onto e-mail.

" I wanted to test the waters and see if we would even be interested in automated booking," Heston said. And, added domestic corporate travel manager Debby Shircliff, the early start helped identify travelers and travel arrangers interested in and accustomed to technology, who now will serve as the first testers of Trip Manager.

The success of the early system convinced not only the travel department, but senior management as well. "Once it was in place and the commission cuts continued to come, the executive committee, which is made up of the heads of all the departments, said okay, this is good. Now let's improve on it," Heston said. ...

In internal beta testing at Thomson since September, Trip Manager this week will be rolled out to about 300 travelers and travel arrangers in the United States and Mexico. ... Thomson again plans an incentive program to encourage change in travelers' behavior. Heston will ask her airline partners for free tickets to offer as raffle prizes for online bookers in return for linking the Thomson booking site to the airline Web site. With the raffle as a carrot and the mandate as a stick, she expects to move 30-35 percent of Thomson's $40 million domestic air volume onto Trip Manager. (Cheryl Rosen, "Thomson Mandates Tech," Business Travel News, 26 Jan. 1998, 50.)

"Worldspan is saying, "the heck with travel agencies -- we're going to explore a new channel," fumed USTAR president Bruce Bishins. "It's a vicious betrayal of their core business and their core customers. The whole point of USTAR's Genesis Project is not to support the CRS channel that is working against us, and to build an alternative." ...

Agreed [Microsoft Travel group product unit manager Greg] Slyngstad, "We got into the travel business in the online booking arena because we feel it's about accessing information and presenting that information in an easy-to-understand fashion, and that's a skill we've developed over the years. As the travel purchasing process moves to the desktop, it's going to involve integration with corporate computing solutions they have in place, and therefore to a partnership of the travel manager and the MIS manager. We're the best at marketing to MIS managers, and American Express knows how to market to travel managers." ...

Travel managers should be looking at technology products as a new opportunity, rather than simply writing them off as something their travellers neither want nor need, Wilkinson said. (Cheryl Rosen, "Enter Microsoft," Business Travel News, 29 July 1996, 1 and 22.)

Endangered Occupations - The Corporate Travel Agent - Machines Can Do It Better

The [commission] cuts have forced the industry to look at the agent role even more critically. Today, agents are not simply booking reservations; there is a much greater need for reservationists to be in a consultative role with travelers. Ideally, point of sale technology enables them to spend more quality time with customers by automating several basic processes, giving agents valuable customer data and taking away the complex coding necessary to navigate the CRS environment.

What agents were doing up to now was time-consuming, but smarter systems on the front end can fix mistakes and then computers do the rest. (Earl Foster, global travel manager at Joseph L. Seagram & Sons in Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

The '95 commission cap and the most recent cuts have spurred agencies to evaluate [POS] technology more closely, [but] point of sale technology predates the caps. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

Endangered Occupations - The Corporate Travel Agent - Opportunities for Technology Vendors

I see a big, big market [for technology vendors] as this whole industry is becoming so technologically oriented. (Richard Kerr, vice president and general manager for the Litton travel and hospitality group in Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

Endangered Occupations - The Corporate Travel Agent - The Role of the Business Travel Press

Business Travel News's Travel Tech World ... was the place where the dream of automating the travel process began to materialize. (Cheryl Rosen, "Worldspan Debuts Business Travel System at TTW," Business Travel News, 9 June 1997, 1.)

Endangered Occupations - The Corporate Travel Agent - Airlines Cut Commissions

With the recent airline commission cut we are all trying to reduce costs. (Kevin Killeen, corporate travel manager, General Motors Corp., in Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 48.)

Since the latest commission cuts, travel agencies are striving to redefine how they do business. (Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

"It seems as though after the first round of commission caps, agencies Felt that they needed to stop spending money in order to survive."

This time around, however, the agencies "are saying, 'I have got to get technology in here if I am going to stay competitive,'" [Aqua sales and marketing vice president Bridgette] Christianson said. (Cheryl Rosen, "Aqua Gains Speed and Interfaces," Business Travel News, 8 Dec. 1997, 10.)

The commission-cutting revolution has finally hit Europe full force -- and it looks even bloodier and more dramatic than the latest round of cuts in the United States.

British Airways waited two months [before] following United's initial commission cuts. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 1.)

My fear is that in the new age of efficiency, technology, high loads and increasing yields, the airlines won't have a conscience. (Jack Alexander, CEO of WorldTrravel Partners in "For Travel Agents: A "Trussed" Issue," Business Travel News, 26 Jan. 1998, 14.)

"We're worried," says [Jere Glover, chief counsel for advocacy at the Small Business administration] of the latest rounds of commission cuts. "We are concerned about the profitability, that we are spreading fewer dollars among more businesses. ... It's too early to know what impact that is going to have and whether the industry can adjust." (Kate Rice, "The State of Small Business," Travel Counselor, February 1998, 30.)

Endangered Occupations - The Corporate Travel Agent - Rapidly-Improving Technology

Coming to the fore in 1998 will be a more widespread use of graphical user interfaces on the front end, allowing the reservationist to work in Windows, with drop-down menus and click-and-drag options, instead of typing in arcane codes. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

Endangered Occupations - The Corporate Travel Agent - The Rise of E-Commerce

[Sabre's Terry Jones] said the trend toward travel agencies charging management fees likely will drive more dollars to the online channel, perhaps including agents who find it a cheaper way to book low-revenue tickets. And he suggested the travel industry watch the burgeoning relationships the three main booking sites are developing with search engines: Expedia with Lycos, Preview Travel with Excite and Trevelocity with Yahoo. (Jay Campbell, "Tech Vendors Still Optimistic, Despite Slow Start," Business Travel News, 10 Nov. 1997, 13.)

In a move that underscores the growing role of the Internet -- and the shrinking role of travel agencies -- in travel distribution, United Airlines this month began moving its heretofore disk-based travel booking system onto the Web.

Unlike competitive online systems ... the new United Connection will not forward reservations to a designated travel agency. Only electronic airline tickets will be offered on all routes where that option is available; where it is not, United will mail tickets direct to customers.

"We didn't want to leave out a functionality that our customers were passionate about, but in our research, the need for a travel agency didn't hit the radar screen," said United director of electronic distribution Mark Koehler. (Cheryl Rosen, "United Shifts Booking to Web," Business Travel News, 8 Dec. 1997, 8.)

It is easy to view the Internet as a foe. We see many new electronic forms of agency bypassing popping up on the Internet. Although we need to stay informed of these new competitors, we should not fear the Internet. ...

Human nature causes each of us to hesitate and pause when we encounter new circumstances. When we don't know what to expect, we tread carefully. In the case of the Internet, it won't hurt you. In fact, if you use it to increase your agency's visibility, improve your interaction with your customers and access a wealth of new and valuable information, you'll learn to love it -- and wonder how you ever sold travel without it. (Scott Ahlsmith, "Developing an Internet Strategy," Travel Counselor, Feb. 1998, 51.)

Endangered Occupations - The Corporate Travel Agent - Agency Bypass

"For the moment it is difficult to book direct but I think soon we will not need travel agents," said [Skanska travel manager and chair of the Norwegian Travel Managers Association Else] Becher, who was not concerned about losing data [an issue travel agents said would arise]. "Most clients in Norway are connected to credit cards, which provide a lot of services," she said, adding that electronic travel management systems will enable corporates to handle many travel agency functions in-house in the near future. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 44.)

BA head of U.K. and Ireland sales Dan Brewin has not ruled out net fares but said he could not eliminate the commission structure overnight for fear of putting [travel] agents out of business.

In the longer term, the probability is that percentage commissions are not the way forward," he said. "A fixed payment for the cost of transaction would be, but that is not on my agenda at the moment. I would be happy to see a business-to-business relationship develop between us and corporate clients [i.e., bypassing the corporate travel agent], and for them to be recompensing [travel] agents. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 44.)

Originally, travel agency commissions were paid because agents developed new business for the airlines, in addition to the routine functions of taking reservations and writing tickets. While leisure agents still generate additional travel, corporate agencies can hardly argue that they are developing new business. The process of taking reservations and issuing tickets has also become much more efficient -- printed tickets are now unnecessary on most business routes. ...

Can your agency survive and make a profit with 8 percent commissions? Probably - if it has reengineered its procedures [and] eliminated unnecessary staff positions. ... Have you streamlined internal and agency processes as much as possible? Are you using electronic tickets? You may want to accelerate review and decision making on automated self-booking and T&E reporting systems. Once you achieve significant usage of e-tickets and self-booking, agency fees should be reduced. ...

Travel agencies have had incomes cut twice in as many years, without notice. Most travel agencies now feel virtually powerless in an equation where major airlines exercise market power to shift costs and dictate terms and conditions. While few would dispute an airline's right to change its commission structure, no business responds well to unexpected news that impacts its investment strategies and earnings, and disrupts its best customers. (Kevin Mitchell, president of Business Travel Contractors Corp., "Airlines Wield Unfair Leverage," Business Travel News, 8 Dec. 1997, 13.)

Thomson Consumer Electronics this week ... becomes the first [travel] buyer to mandate that arrangements for travel from one corporate site to another only can be made electronically. When the system is fully deployed, travel arrangements for employees will no longer be accepted by the agency over telephone. (Cheryl Rosen, "Thomson Mandates Tech," Business Travel News, 26 Jan. 1998, 1.)

Endangered Occupations - The Corporate Travel Agent - Role of the Computerized Reservations Systems (Technology that Predated the Automated Travel System)

"What's behind the scenes is that the CRSs [airline-owned computerized reservations systems] are stabbing travel agents in the back," says Bruce Bishins, president and CEO of United States Travel Agent Registery (USTAR), the company behind the Genesis project, a would-be alternative distribution channel. "The CRSs have too many irons in the fire. They've been very fair-weather with respect to who their customers were and who would support them. Now, by going into the commercial accounts arena and the public arena, they are making the travel agent's customer a CRS customer." (William J. McGee, "The Changing Shape of The CRS Industry," Travel Counselor, February 1998, 44.)

[Mike Estill, chair of the American Society of Travel Agents' travel technology commitee and owner of Estill International Travel Service] weighed in, as well: "The major CRSs are pretty much used to treating their client base like trash, and they can do it because most agents have to use them." (William J. McGee, "The Changing Shape of The CRS Industry," Travel Counselor, February 1998, 44.)

Endangered Occupations - The Corporate Travel Agent - Devaluation of the Worker

Corporate customers [are pushing] their agencies to hold down costs, speed up service and get reservations right the first time. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

"If a corporate customer does business in a way that's cheaper [than using corporate travel agents], we'd discuss a discount [with them]." (Northwest Airline's vice president of distribution planning Al Lenza] said. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

Endangered Occupations - The Corporate Travel Agent - Mistrust

The airline industry suffers from deep mistrust among many parties. Airlines don't trust travel agencies, consumers don't trust airlines, corporations don't trust airlines and travel agencies may never trust their airline distribution "partners" again. Mistrust is very costly. (Kevin Mitchell, "Airlines Wield Unfair Leverage," " Business Travel News, 8 Dec. 1997, 14.)

Endangered Occupations - The Corporate Travel Agent - The Agent Responds

The commission reduction, a deliberate move by the airlines to increase costs for the business traveler, will not be remedied by working with suppliers directly. (Mike Spinelli, president and CEO, American Society of Travel Agents, "Direct Supplier Links Won't Replace Agents," Business Travel News, 10 Nov. 1997, 14.)

There are many financial options available, one of which is a direct payment of a travel agent management fee that eliminates the need to renegotiate their agency compensation package every time the airlines decide to alter commissions.

An agency management fee is a great option for buyers because it enables the agency and the corporation to work together to determine the exact services needed and a forum in which to apply cuts. This type of compensation package creates an open business relationship with no surprises brought on by a change to the commission structure. (Mike Spinelli, president and CEO, American Society of Travel Agents, "Direct Supplier Links Won't Replace Agents," Business Travel News, 10 Nov. 1997, 14-5.)

Agency services were never free, they were included in the ticket price.

The difference is in perception. Companies will pay more attention if, instead of just taking a reduced share of commission revenue, they actually need to issue a check to the travel agency. The level of scrutiny of travel agency costs and value which emerged following the commission caps of 1995 will intensify as costs approach or exceed revenues. (Susan Stowe, consultant with Caldwell Associates, "How to Adapt to the Commission Cuts," Business Travel News, 10 Nov. 1997, 14.)

An increasing number of travel management companies today are positioning themselves as total solution providers and doing whatever it takes to deliver on the promise. From building their own T&E expense software to private labelling a third-party system to serving as value-added retailers to acting as technology consultants, travel management companies are expanding into expense management and systems integration. (Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

While not everyone has the resources of financial position to deploy technology at the same rate, the mega [travel] agencies are able to use economies of scale to head the pack in the POS technology push. (Sarah Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 26 Jan. 1998, 51.)

For a few years, I've hoped for an "orderly transition to the new market." These times are anything but orderly. My hope is that the suppliers will use their new wealth to forge new partnerships based on value and respecting a shock absorber system that has served them well for years. Whether we call ourselves travel agents, travel management firms or distribution agents, we all need to remember the customer is master of the house. Furthermore, the airline-agency dependency is over. We can't count on having everything given to us. To compete, we must do what we do better, cheaper, and faster and prove it every day to our customers and industry partners. Or else, we may end up on the Thanksgiving table. (Jack Alexander, CEO of WorldTravel Partners, "For Travel Agents: a "TRussed" Issue," Business Travel News, 26 Jan. 1998, 15.)

There has been a lot of emotion about change and resentment that the airlines acted unilaterally. As an industry, we need to move beyond that. We have been confronted with a permanent change in the three-way financial relationship among airlines, agencies and corporate customers. (Susan Stowe, consultant with Caldwell Associates, "How to Adapt to the Commission Cuts," Business Travel News, 10 Nov. 1997, 15.)

"No one wants to see us disappear. Everyone wants to see us sell more of their particular product," [Roger Black at Carlson Wagonlit] says. "The suppliers are going to continue looking at the balance, seeing if there is something they can do to enable their company to make more money. That's what everybody tries to do. Every travel agent has to ask the same question: 'Are we as efficient as we can be? Are we charging fairly? Can we charge more?'"

After all, he says, "This is not a charitable foundation. We're here to try to maximize our profits also." (Gary Langer, "Travel Agency Compensation," Travel Counselor, Feb. 1998, 42.)

Europe - Bankrupticies Rising

A staggering 23,161 British businesses collapsed in the first half of 1991, and 900 companies are going out of business each week. (Reimer, 1991, 45.)

Europe - Employment

Many argue that a leaner, meaner Europe Inc. is just what's needed to fend off such heavyweights as Japan's Nissan and Toyota in a single market. 'We'll need a big increase in volume before we add workers,' says Yves Blanc, director of finance at France's Valeo. For labor that's bad news. (Reimer, 1991, 45.)

Executive Pay

Topping the sweepstakes last year was Thomas F. Frist, Jr., chairman and chief executive of HCA-Hospital Corp. of America who brought in $127 million. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

In early November [1996], Michael D. Eisner of Walt Disney Co. realized a stunning $197 million gain on stock options. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

The End of Work - See Technological Restructuring- The End of Work


Employed - Job Insecurity

It is one of the tragic consequences of mass unemployment that it detracts attention in the public debate from the less visible deteriorating situation of the still employed who form, after all, some 80+ per cent of the work‑force. In a labour market dominated by job insecurity, conditions of work deteriorate, promotions and training are delayed, health and safety standards relaxed ‑‑ and all this accepted by a work‑force made more docile by the greatest fear of all, job loss (Burchell, 1942). While consequences of job insecurity are found among all levels of the industrial hierarchy, it is on the lower levels where they are in psychological terms particularly damaging. 'Low income and enforced deprivation of basic commodities, where they occur, have adverse mental health consequences for those at work, just as much as for the unemployed.= (Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 14.)

Employed - Job Insecurity

Workers are replaced, and no one knows who is next. Will they go the way of longshoremen replaced by containerization, or auto workers replaced by robots, or steelworkers replaced by disinvestment and a restructured global steel industry? No one knows, but the predictions are ominous. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 2.)


Economic Policy

Rather than aiming for more heroic deficit reduction, which would only lead to even slower growth, the ... President needs to ... pursue a growth program and plug the drain of health outlays.

The preferred macroeconomic policy is stimulus now, best lef by public investment, followed by gradual deficit reduction after growth is back on track. The preferred health policy is universal health coverage, combined with cost containment. (Robert Kuttner, A Damn The Deficit, Go For Growth,@ Business Week, 18 Jan. 1993, 22.)

The better approach [than tax incentives] would be to use public infrastructure to bridge over the failure of private industry to invest in a deflated economy. When growth is restored, private investment will come back because investors will see customers. This strategy also requires a low-inflation, low-interest-rate compact with the Federal Reserve. Such a compact is attainable if the Fed see s a convincing long-term plan for steady growth and gradual deficit reduction. (Robert Kuttner, A Damn The Deficit, Go For Growth,@ Business Week, 18 Jan. 1993, 22.)


Europe - Social Safety Net

In Western Europe, many of the same economic trends prevail: income differences are growing, unions are declining and corporate restructurings are becoming more common. Yet worries about falling living standards are far less widespread. Why? European workers know that if they lose their job, they will still have access to retraining, health care and retirement pay. Their governments make sure of it. "They are much more confident about the safety net," says Chicago's Susan Mayer. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 25.)


On May 16th a hundred leading business people will converge on the White House to hear Bill Clinton hold forth on the evils of "downsizing". They will then migrate to Georgetown University to interrogate a group of model "corporate citizens" on workplace nurseries, corporate training schemes and the like.

Corporate America's social responsibility ‑- or lack of it ‑‑ has become a sensitive political issue for two reasons. One is that companies are continuing to shed workers despite the economic upturn. The second is the latest upsurge in executive pay. Both of these are, some argue, merely symptoms of a deeper malaise: the widespread feeling that the social contract between business and the workforce has broken down.

Various management fads are aggravating these ills. "Outsourcing" encourages companies to move work (and jobs) outside their old boundaries. "Globalisation" means that companies are increasingly detached from their home countries. "Re‑engineering" has companies tearing up their old contracts (including any social contracts) and starting again. And "labour‑market flexibility" translates into companies happily demanding ever longer hours from their workers while reserving the right to sack them whenever they feel like it.

All these complaints came to a head in January when AT&T announced that it planned to lay off 40,000 people, at a time when it was making record profits and its chairman, Bob Allen, was pulling in an annual salary of $l4m. Politicians such as Pat Buchanan, on the right, and the labour secretary, Robert Reich, on the left, have been quick to accuse bosses of sacrificing their fellow countrymen on the altar of profitability.

But do companies really have social responsibilities? Management theorists broadly divide into three camps on the question.

The first takes as its motto Milton Friedman's'injunction that the business of business is business. Its most influential exponent, Michael Jensen, a professor at Harvard Business School, argues that management's overriding obligation is to increase value for shareholders. He is a champion both of takeovers (which allow shareholders to kick out bad managers) and of downsizing (which can lead to a more efficient allocation of resources). If companies try to pursue the social good directly, they will impoverish society by taking bad decisions, he argues.

A second group of theorists takes the opposite view: that a company's primary responsibility is to its "stakeholders", principally its employees. Both Peter Drucker and Charles Handy argue that stakeholding makes commercial sense, because an ever‑larger proportion of a company's value is in the brains of its staff. Mr Handy would like companies to become "membership communities", with shareholders forbidden to sell the organisation over the heads of employees.

Another in this group,Jeffrey Pfeffer, a professor at Stanford Business School, argues that job security is the best way to give workers a stake in a firm. Such paternalism, he argues, is rewarded in the bottom line. Offering lifetime employment gives firms a head start in the hunt for scarce talent and encourages them to invest in education and training It also gives employees a reason to go that little bit further for their bosses.

The third camp, which seems to include most business people, is somewhere in the middle. Managers feel that they cannot reasonably offer their workers job security at a time when the average life of companies is shorter than that of their employees (and is shrinking). Stakeholding in Germany and Japan has forced up costs and prevented companies from hiring young talent. A job for life, says Jack Welch, chairman of General Electric, provides nothing more than a "fuzzy kind of loyalty".

On the other hand, many bosses are also uneasy about an uncompromising Jensenite commitment to shareholder value. A firm's share price may be the best measure of a management's success. But part of being successful lies in creating ties with both your workers and your customers. In a world in which many consumers make decisions for non‑commercial reasons (the environment, human rights) and good staff are hard to find, managers need to market their reputation for social responsibility as vigorously as they market their products.

What employability means

The nice fuzzy concept around which the third camp has gathered is "employability"‑the idea that companies may not owe their employees a job for life, but they do have a responsibility to train workers so that they have a better chance of finding a new job if the company sacks them. Sumantra Ghoshal, a professor at London Business School, argues that this arrangement also reflects a revolution in the organisation of firms. Once bosses did the thinking, and workers offered them blind obedience in return for job security. Now everybody is responsible for adding to the company's human capital and so improving its competitiveness.

The corporate world seems to be taking to the idea of employability. Companies such as Motorola and McDonald's have even dignified their training facilities with the title of universities, to symbolise the fact that they offer more than job training. Andy Grove, chairman of Intel, tells his 40,000 workers that it is not Intel that is competing, but every one of them, and that it is his task to give them the tools they need to do thejob.

A fluffy compromise that mentions training is exactly the sort of thing to appeal to Mr Clinton. But employability may not be quite as good as it sounds. To begin with, not all skills are transferable: indeed, the latest fashion is for cultivating "core competencies" ‑‑ skills that cannot be replicated by rivals. Similarly, the value of a company's internal training scheme tends to plummet at just the wrong time: a training at IBM was a ticket to a job anywhere in the computer business until the late 1980s, when it became synonymous with yesterday's expertise. Anxiety about jobs will not go away, whatever happens in Washington. (ACivics 101,@ The Economist, 11 May 1996, 61.)


Global Competition - Globalize or Die

The 1990s will be the first decade of true global competition and global economic warfare. (Rock, 1990, 71.)

Today's manufacturing market is a truly world-wide market where only the world class manufacturers will survive. ... To achieve the dramatic results needed for world class competition, dramatic changes are needed in manufacturing philosophies and techniques. (Costanza, 1988, 38.)

Says Tatsuo Takahashi, general manager of Toyota's Europe division, 'everyone is making good cars and cutting profit margins. Competition around the world has become fiercer.' ("Cough and Splutter," 1991, 43.)

"The time has come for an integrated effort to ensure that Americans will have the management and cross-cultural skills necessary to compete on a global basis." (Rhinesmith, 1991, 27.)

A global firm which can shift cash flows from several countries to competitive activities in a given country may be able to underprice a multidomestic competitor, gain market share thereby, and, possibly, even drive a well-established but single-country oriented firm out of its market niche altogether. How does a multidomestic or multinational firm anticipate such competitive pressures and make appropriate responses before its cash and investment potentials are eroded? The answer often is, the firm must itself 'globalize' to survive. This is a key reason why firms desire to expand their strategic perceptions and to become 'more global.' (Spivey and Thomas, 1990, 88-9.)

If we can develop corporations that are consumer-driven, quality-focused, and globally effective, we will have gone a long way toward restoring America's competitiveness and ensuring our continued prosperity into the 21st century. (Rhinesmith, 1991, 29.)

Many argue that a leaner, meaner Europe Inc. is just what's needed to fend off such heavyweights as Japan's Nissan and Toyota in a single market."(Reimer, 1991, 45.)

Forced upon business by unprecedented global competition and financial turbulence, the change is so swift and powerful that it is churning across the business landscape with the force of an army of bulldozers. American companies have started the huge task of rebuilding themselves from the ground up, erecting a sleek new operating architecture to replace the unwieldy processes of the past. ... Their aim: to produce streamlined, combative concerns that can withstand the frenetic, competitive pace of the late '80s. (Russell, 1987, 46.)

Global Competition - Integrated Markets

Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated. Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities. (Farrell, 1991, 73.)

Global Competition - Globalization and Information

"All information about the global market can be a source of competitive advantage." (De Wilde, 1991, 44.)

Global Competition - Globalization and Innovation

"Globalization and innovation are two sides of the same coin." (De Wilde, 1991, 45.)

Global Competition - The Qualities Needed in the Globalizing Firm

If we can develop corporations that are consumer-driven, quality-focused, and globally effective, we will have gone a long way toward restoring America's competitiveness and ensuring our continued prosperity into the 21st century. (Rhinesmith, 1991, 29.)

Global Competition - America is Losing

Having softened up the U.S. semiconductor industry by sapping its profits with low-ball pricing, Japan's electronics giants are moving in for the kill. That's the alarmist view of the proposed takeover of Fairchild Semiconductor Corp. by Fujitsu Ltd. (Brandt, "Japan Buys," 1986, 45.)

Some experts fear that the Japanese ability to organize their research into a program with strong commercial goals could give them the edge in moving the [superconductor] research out of the laboratory.

Even in the basic science [of superconductivity], the international competition is fierce, and other nations are already scrambling hard for products because the potential payoffs appear to be so great. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

Superconductivity is likely to be a severe test of the highly individualistic American system. Even as basic findings are still pouring out of the laboratories, the stark reality of the competitive marketplace looms. And Ionson's embryonic consortium is no match for MITI's directed Japanese effort. In this case, the U.S. may have to consider imitating Japan for a change. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

"The manufacturing industries in North America are facing an incredible challenge from foreign competitors. These competitors are known for their ability to produce high quality, low cost products. Some products, such as televisions, steel and video cassette recorders -- have already been lost to this competition. Others such as automobiles and semiconductors have felt a serious impact from foreign competition.

Industries such as food processing and telecommunications are only now beginning to see this foreign competition. (Costanza, 1988, 38.)

Industry after U.S. industry, from autos to semiconductors, is being beaten in world markets. (Carey, 1991, 128.)

AEven if Americans don't have the highest standard of living, the >one with the most toys= doesn't win with regard to the overall quality of life!@ Responded another engineer, referring to the small living quarters, long commutes and long hours, AThe Japanese living conditions in Tokyo are horrid.@ (Bellinger, 1991, S81.)

Now, according to the industry-funded Council on Competitiveness, among others, there's sobering evidence of a decline in U.S. living standards. Even the Bush Administration admits to worry over the future. 'By the best measure of competitiveness -- income per capita -- the U.S. is still on top,' says John B. Taylor, a member of Bush's Council of Economic Advisers. 'But we may not be growing fast enough to provide for our children.' (Carey, 1991, 128.)

This conflict ... leads to indirect funding of technology important to industry -- but not direct funding unless the magic words 'national interest' are invoked. (Carey, 1991, 128-9.)

The consumer industry ... we lost a long time ago. ... There are a number of people predicting that sometime in the 1991-92 time frame, our leadership position will shift to the Japanese specifically in computers; they will have a larger share of the world market than the U.S. Now that really bothers me. I think that this area is so critical to our effectiveness as a developed country, so critical to the health of our entire industrial base. (Charles E. Spock, president and CEO of National Semiconductors in Weber, 1990B, 56.)

Global Competition - Role of Government - See also Free Market

The combination of industry and government can compete in this global war. We are at a crossroads, and it will take both of us to survive. (Rock, 1990, 75.)

Two hundred years after Treasury Secretary Alexander Hamilton helped set America on its path to greatness, the nation is still embroiled in a battle over the government's proper role in nurturing the country's industrial might. (Carey, 1991, 128.)

Unless Uncle Sam invests more in the technologies of the future, [lawmakers, technopundits, and high-tech chief executives] warn, America's decline is as inevitable as the sunset. 'While the White House is debating ideology, other countries are eating our lunch,' fumes Senator Jeff Bingham (D-N.M.). (Carey, 1991, 128.)

Washington [will not] pattern itself after Japan Inc. (Carey, 1991, 129.)


Globalization - Its Drivers

Listen and you experience everyday a crescendo of information descending from various media outlets‑‑radio, television, print, and the Internet‑‑ about how technology is changing everything when it comes to buying and selling. What is the jargon‑filled noise all about? It is heralding the age of the consumer.

Today the customer is perhaps more empowered than ever before in human history. In these times companies are scrambling to become more customer literate and user friendly‑‑the focus is on the buyer and the selling process.

Throw into this ferment the globalization of business and the brew becomes deadly. . . deadly serious that is. Advances in communications and computing technologies have served up for re‑interpretation traditional notions of time and distance. Cycle times are short, with 7x24 interaction impacting sales collaboration and product manufacturing. Global integration of supply and demand chains is a top priority in this new milieu. Sourcing for resources ‑‑ capital, people, and knowledge that leverage the enterprise's infrastructure ‑‑ is but a mouse click away in some instances. The era of operational focus ‑‑ critical as it is ‑‑ is taking a back seat to a new operating mantra ‑‑ global business growth. (Gopi Bala, A Global Sourcing, A World Trade, May 1998.)


Government Finances

The economic crisis will create an escalating fiscal crisis for governments and other public institutions. Demands for services will increase while the public=s willingness and ability to pay higher taxes evaporates. (Doug Ward, AWill True Value in the Coming Milennium Be for Those Who Can Pay?@ Vancouver Sun, 25 April 1998, B10.)


Housing Market

Those who rented in the inflationary decade watched helplessly as the price of homes took off. People born late in that generation found that home prices were out of sight even before they entered the housing market. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Where is it written that every generation will be more prosperous than the previous one? ... that any 20-year-old should have two children and his own home? ... that a high-school dropout is entitled to a $40,000-a-year job? Is it truly tragic that a dual-income family has to sacrifice savings and vacations to live in a $235,000 house? We have lived too long demanding instant gratification and always more. Until Americans learn self-discipline, self-denial, and sacrifice, we will continue on this road to mediocrity. (D.A. Woodworth. 1991. "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 11.)

[Audrey Burnam, research psychologist at UCLA:] "I certainly expected to be able to afford a home. I am comforted," she sighs, "that this is happening to a whole generation." (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

[Brian Weiss] feels funny about turning 40 this year. Middle age sounds a bit strange because many of us haven't attained the goals that our parents attained at that age. I mean, how can you be an adult when you don't own your a house? (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 26.)

The Baby Boom, says Richard C. Michel of the Urban Institute, was hit by a quadruple whammy: inflation, fierce competition for jobs, exorbitant housing costs and the recessions of the '70s and early '80s. "They grew up with the expectation that they would live better than their parents no matter what they did," says Michel. "The 1970s ended that. It was a time of tremendous economic disillusionment for many people." (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 28-9.)

Between 1973 and 1983 the median real income of a typical young family headed by a person ages 25 to 34 fell by 11.5%. In the 1970s, for the first time in history, the economic value of a college degree declined. An awful lot of physics majors found themselves driving cabs. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.)

Human-Centered Automation - See Appropriate Technology - Human-Centered Automation

AHuman Resources@

When you talk about globalization, you're talking about resource allocation and the most efficient use of your resources. What more important resource is there than your human resources? (Richard P. Bergeman, vice-president of human resources for CPC International Inc. in Brandt, 1991, 38.)

"The industrial countries cannot rely on their natural resources to secure comparative advantages in world markets. Their competitiveness has come to depend on their technological innovativeness, management skills, speed of reaction and willingness to forge links abroad to seek new forms of co-operation. Competitiveness has thus come to depend crucially on human skills -- the success of such resource poor countries as Japan and Switzerland is proof of this." (European Management Forum in Saint-Pierre, 1983, 32.)


Investment

For the U.S. to remain the world's No. 1 economic power, frets William Sterling of Merrill Lynch Economics in New York, "we've got to outinvest our major competitors, and we're not doing that." (Monroe W. Karmin, "Lean Times Loom on the Factory Floor," U.S. News & World Report, Nov. 20, 1989, 72.)

Investment usually follows swings in the economy. For America, the current direction is down. (Monroe W. Karmin, "Lean Times Loom on the Factory Floor," U.S. News & World Report, Nov. 20, 1989, 72.)


Information Technology

Information technology, viewed for a long time as an enabler of business strategy fulfillment, has become instead the driver of business strategy. Today's chief information officer or line of business manager, however, is hard pressed to meet the needs of customers and the increasing enterprise operational and reporting demands through captive, in‑house information technology talent. The hunt for supplemental merchant IT resources ‑‑ locally, regionally and globally ‑‑ is on in earnest. Concomitantly, the day of the third‑party IT service firm is here. It is these firms that serve as the bridge between the creators of the new information technologies and the business users. (Gopi Bala, AGlobal Sourcing,@ World Trade, May 1998.)

In 1998, enterprise IT budgets are likely to increase by double digits over 1997. Merchant IT service providers that have a good understanding of a prospect's or customer's business ‑‑ especially in manufacturing, financial services, healthcare, transportation, utilities, and telecommunications industries world wide ‑‑ will be in demand. A recent Yankee Group survey of senior corporate IT managers confirms that companies need help from these service providers in the following key strategic domains:

internet technology, for building intranets and extranets

data warehousing for understanding and servicing customers better

electronic mail to connect disparate and distributed sites

electronic commerce applications

desktop, local, and wide area networking infrastructures

customer value management applications

integration of the back‑office and newer front‑office applications. (Gopi Bala, AGlobal Sourcing,@ World Trade, May 1998.)

The tidal wave of new information technologies and the rush by business to use them to gain competitive advantage in the global market combine to create a high‑growth sector in itself. The IT services market will grow at better than 20 percent annually over the next three years. The industry already has more than 2,000 players worldwide, with about 10 percent or fewer commanding the majority of revenues. (Gopi Bala, AGlobal Sourcing,@ World Trade, May 1998.)

Information Technology - Hot Labour Market

If you are not concerned about the lack of IT talent, you should be ... and soon. Service firms, in direct response to an ever‑growing customer need, are looking to aggressively acquire staff‑rich firms stateside and abroad or to directly source talent overseas. IBM Global Services and EDS, for example, recently snapped up the IT staff from a couple of failed financial services firms in Japan. Another firm, the PRT Group, created its own "country" to import global programming talent to an island in the Caribbean. Ireland, India, the Philippines, Brazil, Russia, and Italy are target countries for their pool of "bodies." In the next three years, as a buyer expect to pay up to 40 percent more on average for outsourced staff compared to in‑house staff. If you can contract for it, that is. (Gopi Bala, AGlobal Sourcing,@ World Trade, May 1998.)

Sourcing challenges will continue to exist through the rest of this millennium and beyond. Managing the technology and business risks of whatever sourcing decisions are taken will determine whether a company will grow its sales and whether the growth will be profitable. There are challenges in the selection of external service providers, integrating strategic infrastructures with customer‑centric applications, and IT staffing. At The Yankee Group, we now advise senior IT and LOB managers to be particularly ruthless in their quest for IT talent worldwide‑‑your professional growth and job security depend on it. (Gopi Bala, AGlobal Sourcing,@ World Trade, May 1998.)

Some 1,000 entities ‑‑ businesses, individuals, associations ‑‑ are jumping on the World Wide Web every day. So it will not be long before an Internet user will be able to get virtually all the information he or she needs on almost any topic via cyberspace. (Douglas Gallagher, AGetting a Payoff from Technology,@ Mortgage Banking, March 1998.)


Jingoism

The 1990s may just turn out to be the decade when the rest of the world begins to worry about America's new economic muscle. (Farrell, 1991, 73.)

Just-in-Time

JIT is a whole-company philosophy for long-run growth, survival and excellence in the face of worldwide competition. (Heard, 1987, 50.)

[JIT] is the strategy our competitors have used successfully and will continue to use to put us out of business unless we adopt it also. Though our automative, appliance, electronics and other businesses have been sandbagged by JIT users, we are pulling away from the brink and beginning to regain lost ground through our own JIT strategies. (Myers, 1987, 30.)

JIT offers the last chance for many organizations to survive and compete in the world market. (Myers, 1987, 38.)

JIT is our key to economic survival. (Myers, 1987, 30.)

If management really wants to be around in the nineties, something has to be done. We no longer are just competing with the company down the street. Today, the name of the game is global competition. Survival is what many businesses are facing. MRPII and JIT techniques are tools which can greatly enhance our chance to be around in 1990. (Proud, 1987, 81.)

The disagreements between the people who promote MRP II (Material Resource Planning) and the people who promote JIT (Just-in-Time) has almost become a holy war. The proponents of each side of the MRP-JIT war are declaring the other to be a loss to the true faith. However, when the smoke clears and the over used buzz words are quited there is one common goal that both have, and that is improving the operations of their company. (Wells, 1988, 39.)

Though our automative, appliance, electronics and other businesses have been sandbagged by JIT users, we are pulling away from the brink and beginning to regain lost ground through our own JIT strategies. (Myers, 1987, 30.)

Job Creation and Protection

At present we have the highest proportion of all 16‑ to 64‑year‑olds on a payroll in the nation's history‑‑more even than in the record‑setting 1939‑1947 World War II years. We can decide to prop this work force up, or we can let it fall as jobs become scarce. Either option will substantially alter American realities.

Should a national debate prompt us to conclude that we want as many jobs ‑‑ good jobs ‑‑ beckoning as there are job seekers, we would have the following options to choose from: 1. legislate a vast program of infrastructure renewal (rail, air, port, and highway upgrading);

2. expand the ratio of providers to clients in the social services (more teachers, home health aides, social workers);

3. revamp the tax code to encourage entrepreneurs and new businesses;

4. legislate a higher cost for requiring overtime work rather than hiring more workers;

5. renew our use of the 1946 Full Employment Act, which cast government as a job provider when all else failed.

On the other hand, should we conclude that we want to ease our dependency on payrolls and reduce the centrality of paid work in our adult lives, the following options would be open to us:

1. reduce by law our five‑day, 40‑hour week to four days or 32 hours;

2. require a sabbatical year for upgrading skills;

3. encourage phased‑in early retirement beginning at age 45 and ending at 55;

4. employ a Child Allowance Act, such as those overseas, to subsidize child‑rearing costs;

5. employ a national health care plan to subsidize all such costs;

6. employ a national service corps and free college tuition to delay work force entrance and boost the employability of new starts.

Because several of these policy options both generate more job openings and lower the urgency of getting a job, they should earn ever more support in the job‑short years ahead‑‑provided we opt to create a "saner, more equitable, gender‑balanced, ecologically conscious future." (Henderson 1991). (AThe Nature of Work in the Twenty-First Century: Certain uncertainties,@ Business Horizons, Nov./Dec. 1993.)

Job Insecurity

A shakedown is rocking the industry. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

'Fear is rampant in the workplace,' observes Robert J. Kriegel, a consultant and author of a book called If it Ain't Broke ... Break It! (Fisher, 1991, 71

Job Growth - America

If you still think the economy is jobless and recession-prone, it's time to wake up and smell the data. The invigorating aroma of the May employment report alone ought to be enough to change your mind.

U.S. businesses added 209,000 workers to their payrolls in May, following a 216,000 increase in April. The economy hasn't posted back-to-back job gains of that size in more than three years. .... The Labor Dept.'s annual revisions show that the economy generated 336,000 more jobs from April, 1992, to February, 1993, than previously reported.... In the aggregate, payroll employment has now recovered all of its recession losses. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

More than 6.3 million people have found work during the recovery, and unemployment has tumbled from 10.7% to 7.5%. ... The U.S. has managed to generate a total of 13 million new jobs, or a 14% increase. Western Europe, by contrast, has lost some 3 million jobs during the same period, while Japan, for all its competitive might, has added 5.6 million positions for a 9% gain. Manfred Wegner, former chief economist of the European Community, calls it simply "the American miracle."

To be sure, joblessness remains a serious and painful U.S. blight. More than 8 million Americans are still out of work. Moreover, some critics charge that the American job surge, which has been highlighted by the creation of nearly 2 million new fast-food and other restaurant positions, is turning the U.S. into a nation of hamburger helpers at the expense of jobs in the basic industries. John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 44.

Jobless Recoveries

The only downer in the May employment report was continued evidence that manufacturers are still loath to expand their payrolls. Indeed, factories shed 39,000 workers last month on top of the 75,000 they let go in April and the 19,000 released in March. Manufacturers are the victims of two long-term trends: defense cuts and rising import penetration. [What about technological displacement of workers??] (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

This is the first time in the postwar period that [manufacturing employment] has failed to bounce back in the wake of a recession. (Gene Koretz, "American factories still aren't in a hiring mood," Business Week, June 28, 1993, 22.)

Most hiring freezes remain solid - disappointing news for the 3 million Americans who have exhausted their unemployment insurance benefits this year.

... 3.4 million more jobless will use up their benefits next year. (Anon. 1991. "Business Leaders Expect More Layoffs," U.S. News & World Reports, October 28, 20.)


Options for Creating Jobs 

At present we have the highest proportion of all 16‑ to 64‑year‑olds on a payroll in the nation's history ‑‑ more even than in the record‑setting 1939‑1947 World War II years. We can decide to prop this work force up, or we can let it fall as jobs become scarce. Either option will substantially alter American realities.

Should a national debate prompt us to conclude that we want as many jobs ‑‑ good jobs ‑‑ beckoning as there are job seekers, we would have the following options to choose from:

1. legislate a vast program of infrastructure renewal (rail, air, port, and highway upgrading);

2. expand the ratio of providers to clients in the social services (more teachers, home health aides, social workers);

3. revamp the tax code to encourage entrepreneurs and new businesses;

4. legislate a higher cost for requiring overtime work rather than hiring more workers;

5. renew our use of the 1946 Full Employment Act, which cast government as a job provider when all else failed.

On the other hand, should we conclude that we want to ease our dependency on payrolls and reduce the centrality of paid work in our adult lives, the following options would be open to us:

1. reduce by law our five‑day, 40‑hour week to four days or 32 hours;

2. require a sabbatical year for upgrading skills;

3. encourage phased‑in early retirement beginning at age 45 and ending at 55;

4. employ a Child Allowance Act, such as those overseas, to subsidize child‑rearing costs;

5. employ a national health care plan to subsidize all such costs;

6. employ a national service corps and free college tuition to delay work force entrance and boost the employability of new starts.

Because several of these policy options both generate more job openings and lower the urgency of getting a job, they should earn ever more support in the job‑short years ahead‑‑provided we opt to create a "saner, more equitable, gender‑balanced, ecologically conscious future." (Henderson 1991). (AThe Nature of Work in the Twenty-First Century: Certain uncertainties,@ Business Horizons, Nov./Dec. 1993.)


Leveraged Buyouts

The King Kong of leveraged buyouts [was] the takeover of RJR Nabisco Inc. (Hawkins, 1991, 27.)

Like so many companies with a hangover from the roaring '80s, Horne's problems began after a management-led leveraged buyout. (Schroeder, 1991, 39.)

[Most raiders had] an interest mainly in self-enrichment. (Faltermayer, 1991, 60.)

The sideshow will heat up again one of these days, given the system's tolerance for blitzkrieg tender offers. (Faltermayer, 1991, 59.)

Loyalty

"How to Survive when the Company is Looking out Only for Itself." (Fortune, November 18, 1991, cover.)

Says Paul Hirsch, professor of business policy at the University of Chicago Graduate School of Business: “The new culture is to keep your nose clean and your bags packed. The moral that people see around them is, if you fall in love with your company, you're going to get burned.” (Rudolph, 1987, 48.)

The Organization Man was a loyal, hard-working, white male who had given himself entirely over to his company. He avoided risk, wasn't terribly creative, and was quicker to take orders than to question authority. (John A. Byrne, "Is the Company Man Really a Goner?" Business Week, 26 Aug. 1991, 12.)


Lower Middle Class

In today's economy, workers with only menial or easily replaceable skills can all but forget about getting ahead. Only "the highly educated are doing fine," says Syracuse University economist Timothy Smeeding. [Harvard University economist Lawrence] Katz found that, in 1987, the average white male college graduate with six to 10 years of work experience earned 70 percent more than the average white male high-school graduate with similar experience. Not since World War II have the less educated fared so poorly. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 23-4.)


Manufacturing Sector - Impact of Technological Restructuring

Those who have suffered most from the trends in U.S. employment are laid-off steel- and autoworkers, some of whom had been making more than $20 an hour in wages and benefits. While total manufacturing jobs have grown by 1.5 million since the pit of the recession, about 500,000 employees have never found other positions. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Those who have suffered most from the trends in U.S. employment are laid-off steel- and autoworkers, some of whom had been making more than $20 an hour in wages and benefits. While total manufacturing jobs have grown by 1.5 million since the pit of the recession, about 500,000 employees have never found other positions. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Manufacturing Sector - Employment Trends

The only downer in the May employment report was continued evidence that manufacturers are still loath to expand their payrolls. Indeed, factories shed 39,000 workers last month on top of the 75,000 they let go in April and the 19,000 released in March. Manufacturers are the victims of two long-term trends: defense cuts and rising import penetration. [What about technological displacement of workers??] (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

Marketing

The purpose of marketing is to create a desire to buy, to sell products and services on a repeat basis. (Levinson, 1989, 25.)

Billboard magazine charts the progress of hot-selling software just the way it does that of Michael Jackson records.

Indeed, the software field has taken on many of the characteristics of the pop-music business. If a new product flops, manufacturers can quickly go from boom to bust. Programmers, the people who write software, can find themselves millionaires at 20 but has-beens at 30. So-called pirates are stealing millions of dollars' worth of programs by copying them illegally.

Manufacturers of popular software are becoming industry superstars. ("The Wizard Inside the Machines," 1984, 71.)

The Street is ... making huge sums by creating new products and strategies and selling them to clients. (Spiro, 1991, 83.) The word 'strategy' ... used to mean a damn good idea for knocking the socks off the competition. (Peters and Waterman, 1982, 31.)

Materialism - See also Empirical Materialism and Consumption as a Way of Life

"Those who have been striving to be conscious in business, in education, in health care, and so on could join forces to give the stifling materialistic worldview a shove. True, the paradigm is already shifting.... But, because of the environmental crises, the shift has to take place quickly." (Ferguson, 1990, 56.)

"Whatever happened to the Love and Peace generation? Whatever happened to the people who landed on magazine covers because they had thrown away lucrative careers to help the less fortunate irrigate their soy fields? At what point on our evolutionary time line did the 'search for self' devolve into an ontology predicated on ownership? I have, therefore I am. Where, in short, have all the flower children gone?" (Woodruff, n.d., n.p.)

Mergers and Acquisitions

"Would-be-masters of the universe luxuriated for a time on their slice of an estimated $60 billion in fees for dealmakers, lawyers, and commercial banks." (Faltermayer, 1991, 58.)

"[The M&A binge of the '80s] was raw foolishness. We bought the self-righteous and self-serving arguments that justified a raider strategy to pursue wealth.'" (CEO Ryal Popa of Storage technology in Teitelbaum, 1991, 73.)

Middle Management - Impact of Technological Restructuring

Like lieutenants in the army, these [middle managers] are the people who translate the generals' commands, squad by squad, into movement on the ground. But their demoralized state of mind today is not at all conducive to improving productivity or increasing quality -- let alone innovating. All too often, the people who used to be the brass' most reliable backers ... now seem to be more disenfranchised and cynical than the hourly folks. And because of their perception that the upper echelon has turned on the underlings, the white-collar blues won't go away anytime soon, economic recovery or no. (Fisher, 1991, 70.)

'The efficiency problem,' Darman points out, 'is a white-collar problem even more than a blue-collar problem.' Between 1983 and 1987, some 600,000 to 1.2 million middle- and upper-level executives with annual salaries of $40,000 or more lost their jobs. An additional 200,000 to 300,000 such executives are expected to receive pink slips over the next two years." (Russell, 1987, 47.)

For most of the past 50 years, Americans have seen a white-collar job as a buffer against the vicissitudes of the labor market. Factory workers might get laid off every time orders slumped, but managers and professionals knew that their skills were too valuable for such treatment. This belief has been badly shaken by the current recession, which most observers have perceived as having a distinctly white-collar cast. (Aaron Bernstein. 1991. "Who's Really Taking the Brunt of the Recession?" Business Week, October 21, 94.)

Middle Management - Employment Trends

Whole levels of middle management have been wiped out and will not be replaced. (Harold Johnson, managing VP of Korn/Ferry International, an executive search firm in Brownstein, 1991, 29.)

[A] vast wave of managers and professionals ... have been squeezed out of big corporations struggling to compete in a global economy. ... Even as the economy recovers, U.S. companies are certain not to rebuild their ... management ranks. Bruce Nussbaum, "Corporate refugees: After the pain, some find smooth sailing," Business Week, April 12, 1993, 58.

While middle managers make up only 5% to 8% of the work force, they account for 17% of all dismissals in the past three years. ... Research also shows that thousands of companies have downsized more than once since 1988. (Fisher, 1991, 71.)

Mergers, acquisition and downsizing are stripping away the layers of middle management, who often acted as intermediaries between functions. Decentralization and globalization of operations are forcing companies to put greater control into the field. These trends are altering traditional chains of command and resulting in flatter corporate organizations than ever before. (Anon., (McDonald, 1991, 15.)

For most of the past 50 years, Americans have seen a white-collar job as a buffer against the vicissitudes of the labor market. Factory workers might get laid off every time orders slumped, but managers and professionals knew that their skills were too valuable for such treatment. This belief has been badly shaken by the current recession, which most observers have perceived as having a distinctly white-collar cast.

... "There were lots of well-publicized cuts of middle managers," says Tom Nardone, an economist at the Bureau of Labor Statistics (BLS). "But when you look at the figures, this recession hasn't hit white-collar workers harder than blue-collar ones." What's more, surveys by compensation consultants show that the hiring outlook for office workers during the next couple of months is better than it is for factory workers. It seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs today than there were when the recession started in July 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals -- excluding the technical and sales people whom the BLS lumps into its white-collar category - -and you actually find 400,000 more such jobs today.

A similar trend holds true for unemployment. The jobless rate for production workers hit 9% in September, up from 7.1% at the start of the downturn. White-collar unemployment, which historically tends to be lower, started at 3.2% and reached 4% last month. "White-collar unemployment never went over 4.2% during the recession, while the blue-collar rate never went below 7%," says Erica L. Goshen, an economist at the Federal Reserve Bank of Cleveland. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession?" Business Week, 21 October 1991, 94.)

Mistrust

"There is a general public turning away from confidence in government, the private sector and enterprise itself. We're just tired." (Conference Board Management Counsellor Audrey Freedman in Anon. 1991. Greenwald, 1991, 36.)

Money

Money still makes the world go round. (Cooper and Madigan, 1991C, 21.)

"'Money is power.'" (Jerry Rubin in Thomas, 1986, 28.)

"Money is the absolute standard. Freedom, and the dignity and well-being of one's fellow creatures, simply don't figure in the basic formula." (Ventura, 1991, 78.)

"Psychological data from several nations confirm that the satisfaction derived from money does not come from simply having it. It comes from having more of it than others do and from having more this year than last. Thus, the bulk of survey data reveals that the upper classes in any society are more satisfied with their lives than the lower classes are, but they are no more satisfied than the upper classes of much poorer countries -- nor than the upper classes were in the less-affluent past.

"More striking, perhaps, most psychological data show that the main determinants of happiness in life are not related to consumption at all: Prominent among them are satisfaction with work, leisure, and friendships. Indeed, in a comprehensive inquiry into the relationship between affluence and satsifaction, social commentator Jonathan Freedman notes, "Above the poverty level, the relationship between income and happiness is remarkably small." (Durning, 1991, 73.)

Motivations

It’s never been done before – like the first moon shot. (Otis Port, “Speed Gets a Whole New Meaning,” Business Week, 29 April 1996, 90.)

Middle Class

The [KPMG] report says there is a widening gap between “haves” and “have-nots.”

In contrast to the ‘Golden Era’ of 1947-1973, when incomes rose across the board, salaries at the upper end of the pay scale are going up rapidly, while the salaries of the majority are stagnant or going down.

The result is an eroding middle class, a growing underclass and a badly tarnished American Dream.” (KPMG report, Transformation to the 21st Century quoted in Doug Ward, “Will True Value in the Coming Milennium Be for Those Who Can Pay?” Vancouver Sun, 25 April 1998, B10.)

Mike Hensler is not poor, not unemployed, not down on his luck. For 17 years he's held a steady job as a millwright at a Houston chemical plant. The $30,000 or so he earns pays the mortgage on his three-bedroom house and his son's community-college tuition. Separated from his wife, he feels little need for luxuries. Mike Hensler, 48, is making ends meet. But making ends meet means no vacation travel and little savings; to get by, Hensler commutes by motorcyle. When you ask him about the future, there is no confidence in his response. "I'm doing well now and I don't want to sound like I'm crying, but the whole middle class is in a squeeze," he says. "I have not lived as comfortably as my father, and I think my children will not live as well as I have." Lower-middle class workers, who didn't get their fair share during the booming 1980s, feel like they're falling further into the economic abyss. Other Americans, many of whom have done quite well over the past decade, are starting to question whether they really have it all that good. As the economy continues to sputter, the great middle class -- and that includes families who earn generous salaries by anyone's measure -- is worried about keeping up with mortgage payments, paying for kids to go to college and even putting away enough money for retirement nest eggs.

These days millions of Americans are feeling a lot like Hensler. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 22.)

The income gaps among American families have widened considerably in the 1980s. The top half of nonelderly households -- those with incomes of more than $35,000 -- are, as a group, still gaining. The rest are not. Among families making $60,000 a year, income growth is almost imperceptible. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 23.)

The fall in real wages is biting at last. ... Now even citizens like Scott McDonald of San Antonio are feeling the pinch. "When I was in college, if someone had told me I was going to make $60,000 a year, I would have thought I was going to be a rich man," the 30-year-old band teacher said. But on a combined income of $60,000, McDonald and his wife, Cindy, who have five children, feel like they're just scraping by. "We just keep repairing old cars. We've cut out all red meat. We try to eat more vegetables and we try to use as little electricity as possible," Scott says. "We feel like we're almost at our limit." (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 23.)

It may well be that tax policies, environmental regulation, health care costs, the value of the dollar, and industry's own resolve will determine U.S. competitiveness -- no matter who wins the great industrial policy war. (Carey, 1991, 129.)

If Congress writes rules that are too rigid for the new era of financial services, it may win the war of the '80s -- and lose the war of the '90s. (Young and McNamee, 1991, 123.)

Global Competition - Partnering

Most people in the interactive multimedia field Ahistorically are competitors one day and cooperating and co-bidding on a contract the next.@ (Rockley Miller, editor of multimedia Multimedia & Video Disc Monitor in Van Brussel, 1991, 1.)

Global Competition - Skills Transfers

'People who develop technology don't share it with their competitors,' says Thomas W. Strauss, a Salomon vice-chairman. (Spiro, 1991, 82.)

The goal is to maximize the effectiveness of intended skills transfers while minimizing unintended transfers. In areas where the firm wishes to prevent skills from bleeding through to its partner, it must be able to build barriers to encroachment. The dilemma in competitive collaboration is to share enough of one's skills to create external advantage, while at the same time preventing a once-and-for-all transfer of vital skills that would leave one at a disadvantage within then partnership. (Hamel and Prahalad, 10.)

Global Competition - Casualties

Flint, Mich. (pop. 144,000), some 50 miles north of Detroit, is a casualty of the foreign competition encircling American automakers. ("Main Street," 1989, 49.)

Greed

For some years, entertainers had lost the '60s activism spirit and were getting caught up in our society's general sense of greed. (Baez, 1990, 55.)

Every investor dreams of beating the market. ("Dean Foust, "Talk about a Glitch in the System," Business Week, 9 Sept. 1991, 82.)


Outsourcing - Where the Current Push Comes from

No matter what is done to increase in‑house IT capability, more than one‑third of the budget for IT projects will be diverted to the third‑party firms in the near future. Driving this outsourcing push over the next two to three years will be staffing shortages, as companies divert scarce human resources from projects supporting the enterprise to a project supporting the future of the IT system ‑‑ freeing their systems of the millennium bug. Year 2000 and the prospective European Monetary Union (EMU) compliance issues are full employment acts for IT talent worldwide, compounding internal business growth IT needs. With so much going on, many firms are in denial from an execution perspective, but cognizant of the fact that the work needs to get done in the next two to four years. Where does this additional staffing come from and how will the work get done?

Very simply, these external IT resources come in three flavors: consultants, systems integrators, and outsourcers. Consultants develop the road map that pushes firms to make the coupling between business strategy ‑‑ "We want to sell 25 percent more widgets in China by the year 2000" ‑‑ and IT strategy: "So we shall add a new front‑office sales and customer service application, coupled with added horsepower to the existing back‑office inventory, distribution, and finance applications." (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)

“Corporate America is downsizing and needs the assistance of outside parties that provide solutions, not just pieces and parts of a solution,” says [Mark] Creglow [a principal at DocuTech, Lincoln, Nebraska]. “A bank’s core business is banking, and an insurance company’s is providing policies. Their employees can’t spend all their time operating a scanner or a jukebox. They need to be able to retrive information as quickly and as easily as possible. That’s why they are willing to pay service bureaus to do the scanning and implement a retrieval solution.” (“Changing Roles in Document Management,” Business Systems Magazine, February 1997.)


Poverty - In America

NBC Nightly News reported on October 30, 1991 that 23 million, nearly one in 10, Americans was on food stamps.

Profits

Healthy profits [are] the lifeblood of any corporate body. (Pomice and Cohen, 1991, 66.)

Her formula is exuding the scent of profits. ... Now rivals are trying to beat [Anita] Roddick [owner of the Body Shop] at her own game. (Zinn, 1991, 115.)

Profits Up Once Again at Data General Corp. (Wintrob, 1991, 10.)

"... in the black." (Wintrob, 1991, 10.) Profits boomed." (Spiro, 1991, 84.)

"Money machine." (Spiro, 1991,80.)

"There is good reason to believe this profit surge will have real staying power." (Spiro, 1991, 80.) "A low-profit business." (Spiro, 1991, 81.)

"Trying to profit from price differences." (Spiro, 1991, 82.)

"Big profit centers." (Spiro, 1991, 82.)

"Lock in profit." (Spiro, 1991, 82.)

"Profit margins ... have come under pressure." (Weiss, 1991A, 85.)

"That tore deeply into profits." (Depke, 1991, 38.)

"U.S. brokers ... are reaping record profits." (Holden, 1991, 96.)

[He offers 100 marketing weapons.] "Your bank account will brim with profits in direct proportion to how your marketing arsenal brims with these weapons." (Levinson, 1989, 4.)

"[These] fundamentals for winning the battle for healthy, honest, and growing profits ... will serve you well on your way to the battlefield." (Levinson, 1989, 3?)

"Profit is like oxygen -- it is crucial to our survival, but it is not the purpose of our lives," stated [Max] Carim. (Daniel, 1989, 75)

"Reap ... profits." (McWilliams, 1991, 98.)

"Profits are to business what power is to politics - not the raison d'etre but the sine qua non." (Horwitz, 1973, 1.)

"A firm is an organization with a purpose. ... The purpose is ... in general, reasonably, assumed to be the search for profitability." (Horwitz, 1973, 4.)


Paradigms - Multi-factor Explanations

It is a magnificent feeling to recognize the unity of a complex of phenomena which appear to be things quite separate from the direct visible truth. (Albert Einstein in ELT, 77.)


Recession - America

The recession started in July, 1990. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Recession - Europe

Europe is now plunging into Continent-wide recession. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

This recession [in Europe] is unusually deep partly because Europe had made such a determined march toward global competitiveness. In their drive to create a single market by 1993, many European companies made remarkable progress. Auto manufacturers cut costs by 50% and more, dramatically closing the gap with the Japanese. Some steelmakers became the world's most efficient. Such moves and others cost Europe hundreds of thousands of jobs and depressed consumer demand. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.

Re-engineering

[Re-engineering means] sweeping changes in management and organizational structure that are redefining how work gets done. (Business Week, June 14, 1993, 57.)

Restructuring - See also Technological Restructuring

"Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: 'Restructuring will be a way of life for a long, long time.'" (Russell, 1987, 47.)

Robots

Robots are by definition general-purpose. What makes them different from other automated devices is that they're programmable. Simply by changing the program you can make them do different things. But they still have to be specialized in the sense that every task is unique. Usually a robot is adequate for 90 pecent of the tasks it may be required to do, but it has to be specialized for the remaining 10 percent. And this 10 percent represents a large number of narrow tasks that have to be specially designed for. (Raj Reddy, director of the Robotics Institute at Carbegie Mellon University in Gina Goldstein, "Raj Reddy: Shaping the Next Generation of Robots," Mechanical Engineering, June 1990, 39.)


Service Sector - Employment Trends

The bulk of the new slots have come from business, health, and personal services. Some argue that these are low-wage, dead-end jobs, but in May the average hourly wage in services stood at $10.81, not much below $11.72 in manufacturing. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.) Critics charge that many of the new service jobs pay far less and require fewer skills than the blue-collar occupations that have been dwindling. The result, they say, is that the number of middle-class workers is steadily shrinking. Asserts Harvard Economist Richard freeman: "For the first time in American economic history, the shift is toward lower-wage industries." (John Greenwald, "A Remarkable Job Machine," Business Week, 25 June 1984, 45.)

Much of America's job growth is in the service sector. Workers performing every task from plumbing to neurosurgery have increased from 53% of the labor force in 1950 to 70% today. In the 1970s, the largest gain in total employment was made by secretaries, whose members rose by nearly 1 million. That was followed by a 556,000 increase in cashiers and the addition of 501,000 registered nurses. John Greenwald, "A Remarkable Job Machine," Business Week, 25 June 1984, 45.

Recently it has become fashionable to engage in "services-bashing" -- that is, deploring the decline of the U.S. industrial sector and lamenting what one well-known industrialist labels "the McDonaldization of America." Tied to such complaints are reports of lagging productivity gains and lower wages in the service sector.

But consider these facts: in the past 20 years, 36 million net new jobs have been created in the U.S. - far more than in Japan and Western Europe combined. On balance, 9 out of 10 of these jobs have been in services. Of the more than 22 million women added to the employment rolls in the U.S. during this time, 33 out of 34 found a job in services. And the most rapidly growing job categories are in information-centered services, demanding high skills, for which wages are increasing from a lower base but at a faster rate than those in the manufacturing sector. James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.

The balance of employment is almost certain to continue shifting toward services. American manufacturers, with increasing productivity and a constant share of the country's output, will employ a decreasing proportion of the work force. At the same time, service industries, whose share of output as well as productivity is growing, will enlarge their portion of total employment. James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22. Given the inability of the industrial sector to provide sufficient jobs, particularly at a time when millions of women have elected to work outside the home, the continued ascendance of the service economy has, in fact, been of incalculable social as well as economic benefit. It indicates a real need to prepare larger proportions of our population for careers in services. That is as exciting a prospect in these times as the one that confronted aspiring manufacturers and workers at the outset of the Industrial Revolution. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

Service jobs frequently pay lower wages than manufacturing. James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.

Social Darwinism - Adapt or Die

If management really wants to be around in the nineties, something has to be done. We no longer are just competing with the company down the street. Today, the name of the game is global competition. Survival is what many businesses are facing. MRPII and JIT techniques are tools which can greatly enhance our chance to be around in 1990. (Proud, 1987, 81.)

Social Darwinism - The Prize is Profit

You are surrounded. All around you are enemies vying for the same bounty [i.e., zero sum]. They're out to get your customers and your prospects, the good and honest people who ought to be buying what you're selling. These enemies are disguised as owners of small and medium-sized businesses.

These enemies thrive on competition. They're out to get you and get you good. ... Your enemies mean business, your business, your profits. (Levinson, Jay Conrad. Guerilla Marketing Attack. Strategies, Tactics, and Weapons for Winning Big Profits for your Small Business. 1989, 1.)

'Money is power.' (Jerry Rubin in Thomas, 1986, 28.)

Money is the absolute standard. Freedom, and the dignity and well-being of one's fellow creatures, simply don't figure in the basic formula. (Ventura, 1991, 78.)

One reason [for high enrollments in law schools] is obvious: moolah. (Galen, 1991, 31.)

Social Darwinism - The Aim of Competition is Victory

To all ... the many unnamed heroes and heroines of marketing wars..., I ... urge you onward to victory. (Levinson, 1989, viii.)

Pfizer's marketplace victories.... (Pomice and Cohen, 1991, 68.)

Get the jump on the competition. (Foster, 1986, 37.)

[Knock] the socks off the competition. (Peters and Waterman, 1982, 31.)

Many Europeans look to the Japanese conquest of industrial America as a cautionary tale. (Powell, 1991, 33.)

Social Darwinism - Survivors Have a Winning Attitude

A winning attitude. (Auerbach, 1991, 38.)

The Psychology of Winning. (Auerbach, 1991, 47.)

Dr. Robert Haas. Eat to Win. The Sports Nutrition Bible.

A player - or employee - who gives his or her all, who is willing to pay whatever price it takes to succeed, is a winner regardless of who wins the game or what the standings are at the end of the year, or whether a particular project succeeds or not.

It's a lot more fun when you're winning. The feelings are all positive - excitement, stimulation, challenge, reward, delight. motivation, and anticipation. The feelings can be negative when you're losing - stress, anger, procrastination, rejection, and resentment. I say 'can' because they don't have to be. You can learn a lot from losing. (Auerbach, 1991, 47.)

The guerilla marketing attack is not just an exercise. It's a real battle, and there are winners and losers. Now you know the personality of the winners. (Levinson, 1989, 38?)

Social Darwinism - Only the Fittest Firms Survive

Says [Borg-Warner's] CEO James Bere...: 'There's nothing like the survival mode to get humans moving.' (Faltermayer, 1991, 61.)

In that modern-day tribe called a corporation, it's still the survival of the fittest. And in the treacherous nineties, the fittest will certainly be the best informed. (Dow Jones ad in Business Week, Sept. 23, 1991, 33.)

[Harley-Davidson Chairman Vaughn] Beals foresees a major shakeup in America coming soon -- one in which only the strongest, best prepared companies will survive. (Willis, 1986, 22.)

It's evolution. Successful firms will grow big, and smaller ones will shrivel and die. (About firms of upwards of 800 lawyers, Management specialist David Maister in Glaberson, 1986, 104.) Moody's expects Wall Street in the 1990s to be marked by 'rapacious competition' that will lead to greater consolidation of the industry.

As a result, ... a number of firms that are not prepared for the global competition of the next decade are likely to be driven into mergers, undergo big realignments or fail.

The changes will bring with them a good deal of pain, the report said. (Eichenwald, 1990, C8.)

Social Darwinism - Defeat is being put out of business

[JIT] is the strategy our competitors have used successfully and will continue to use to put us out of business unless we adopt it also. (Myers, 1987, 30.)

Social Darwinism - Today's Firms Compete for Survival in a Global Arena

If management really wants to be around in the nineties, something has to be done. We no longer are just competing with the company down the street. Today, the name of the game is global competition. Survival is what many businesses are facing. MRPII and JIT techniques are tools which can greatly enhance our chance to be around in 1990. (Proud, 1987, 81.)

Today's manufacturing market is a truly world-wide market where only the world class manufacturers will survive. ... To achieve the dramatic results needed for world class competition, dramatic changes are needed in manufacturing philosophies and techniques. (Costanza, 1988, 38.)

Social Darwinism - There are Allies and Enemies, Winners and Losers

Cost accounting is enemy number 1 of production. (Eliyahu M. Goldratt in Tatikonda, 1988, 1.)

The gold fields of B.C. made poor men rich and rich men enemies. (cover of Report on Business Magazine for Nov. 1991.)

If there's more than one company in your business, somebody is winning and somebody is losing, just like in the NBA. Somebody's got a bigger share of the market, somebody is making more money, somebody is beating someone else. Auerbach, 1991, 30.)

This is the heart of our fundamental problem. ... Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. A zero-sum game is any game where the losses exactly equal the winnings. All sporting events are zero-sum games. For every winner there is a loser, and winners can only exist if losers exist. What the winning gambler wins, the losing gambler must lose. (Thurow, 1981, 11.)

Social Darwinism - Business as Competition

JIT is a whole-company philosophy for long-run growth, survival and excellence in the face of worldwide competition. (Heard, 1987, 50.)

What is GE Capital's edge? ... Most important is a culture that successfully blends an entrepreneurial spirit with the hard-driving and intensely competitive focus of its parent. (Tim Smart, "G.E.'s Money Machine," Business Week, March 8, 1993, 63.)

The U.S. has scored a victory in its battle to become more competitive in the global economy. (Farrell, Christoper, "The U.S. Has a New Weapon: Low-Cost Capital," Business Week, July 29, 1991, 72.)

Japan emerged as the world's most feared global competitor in the 1980s. (Farrell, 1991, 72.)

Social Darwinism - Business as a Game

Would-be-masters of the universe luxuriated for a time on their slice of an estimated $60 billion in fees for dealmakers, lawyers, and commercial banks. (Faltermayer, 1991, 58.)

Anon. 1991. "Like Everyone Else, Cable is Just Playing to Win," Business Week, Sept. 2, 7.

Japan is an enemy that is not playing the game ... there is an absolute desire to conquer the world. (Buchanan and Macli, 1991, 83.)

The 1990s may just turn out to be the decade when the rest of the world begins to worry about America's new economic muscle. (Farrell, 1991, 73.)

Gould ... revived its stagnating sales with hardball tactics. (Zinn, 1991A, 38.)

Social Darwinism - Business as a Race

The players are choosing sides for the multimedia race.

U.S. markets shine as Japan loses its lead. (Neff, 1991, 52.)

As U.Sl. industries, one after another, fall behind in the global economic race, pundits say America must be losing its edge in science and technology. (Naomi Freundlich, "U.S. Research Looks Strong -- Except Where It Counts," Business Week, July 15, 1991, 131.)

Social Darwinism - Business as Boxing

Europe gets pummeled. (Neff, 1991, 52.)

Hewlett-Packard [is] packing a powerful punch. (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.)

The auto slowdown ... clobbered Italy's Fiat. (Neff, 1991, 53.)"Competition is tough." (Mandel, 1991, 38.)

"Free-for-all: Japan, the U.S., and the EC are duking it out to determine who will dominate the New Europe -- and the New Century." (Business Week leader, June 3, 1991, 2.)

"Food Lion stores and a union square off over scheduling policies." (Konrad, 1991, 40.)

By 1989, more than 60 Far eastern clones were closing in on HP's market. In a lightning fast response, the Silicon Valley company struck back with cheap and technologically advanced machines. 'We hit them with a left, then a right hook,' says Richard Watts, Hewlett'Packard's director of worldwide sales and distribution for computer products. ... That fancy glovework ultimately landed pugnacious HP in the winner's corner. (Pomice and Cohen, 1991, 73.)

Many argue that a leaner, meaner Europe Inc. is just what's needed to fend off such heavyweights as Japan's Nissan and Toyota in a single market. 'We'll need a big increase in volume before we add workers,' says Yves Blanc, director of finance at France's Valeo. For labor that's bad news. (Reimer, 1991, 45.)

Intelsat is already under pressure to lower rates to compete with the fiber-optic cable networks that cross the oceans. And it's showing bruises as a result. (Vogel, 1991, 103.) Intelsat won't give up its monopoly without a fight. (Vogel, 1991, 104.)

[HP's] profit margins have been chopped down to size by low-priced Asian imports. But the company is slugging back with proprietary products like .... (Pomice and Cohen, 1991, 73.)

Like so many other vendors, Straus Computer Inc. has moved to Reduced Instruction Set Computing (RISC)-based technology which it hopes will help it go toe-to-toe with Tandem for its share of the worldwide fault-tolerant market. (Fuochi, 1991, 9.)

Social Darwinism - Business as Predation

"In the age of information, survival still depends on hunters and gatherers," ad in Business Week for Dow Jones Information Services, Sept. 23, 1991, 33.)

Damon Corp. was ripe for the picking. (Amy Barrett, "A Wake-Up Call for the M&A Crowd," Business Week, July 26, 1993, 26.)

The U.S. company [HP] has snagged deals with ... (Pomice and Cohen, 1991, 73.)

Pfizer [has] a killer instinct for competition. (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.)

[Samuel J. Heyman, dealmaker] never bagged his prey, but he pulled down about $500 million in profits from his investments. (Hager, 1991, 110.)

Normally conservative Corning Inc., which had been eyeing Damon for years, jumped in with a decisive strike -- a $401 million cash offer of its own. Done deal. Only with a monumental leap of imagination could this miniwar be likened to the bid-'em'up days of the 1980s. (Amy Barrett, "A Wake-Up Call for the M&A Crowd," Business Week, July 26, 1993, 26.)

Mutual funds hungry for high yields are snatching up junk bonds as quickly as they hit the market. (Amy Barrett, "A Wake-Up Call for the M&A Crowd," Business Week, July 26, 1993, 26.)

GE Capital is using this environment to gobble up assets from weakened rivals and expand its reach. (Tim Smart, "G.E.'s Money Machine," Business Week, March 8, 1993, 63.)

GE Capital is always prowling for new businesses to expand into. (Tim Smart, "G.E.'s Money Machine," Business Week, March 8, 1993, 63.)

Already, super-regionals such as Banc One and First Union have been running up huge market share gains by sticking to the business basics while gobbling up competitors. (Hawkins, 1991, 117. [On McColl of C&S/Sovran])

"We'd all kill for that kind of savings," says Robert Benedict, head of applied mathematics in Goodyear's process research laboratory. (Art Zimmerman, "These Materials are Downright Precocious," Business Week, Sept. 16, 1991, 112J.)

The Japanese have 14 very competitive companies slashing one another's throats for market share. Each has to be excellent or perish in the cutthroat competition of the free market. (Jonah McLeod, "'You Don't Need Mass Resources to Win" [Interview with T.J. Rodgers, CEO of Cypress Semiconductor], Electronics, August 1990, 85.)

"The people who can pounce first are going to make money." [Equities-technology manager Hadar Pedhazur of UBS Securities Inc., in Gary Weiss, "In the Trading Wars, This Swiss Bank is Anything but Neutral," Business Week, June 10, 1991, 84.)

Social Darwinism - Business as War

Corporations ... are running scared. The reason: They fear an onslaught of competition, especially from the Japanese, as the single market of 1992 nears. Says Bill Brodrick, a union official of the Transport & General Workers at Ford's plant in Halewood, England: 'Everyone realizes only the fittest will survive.' (Reimer, 1991, 44.)

Every day around the world, corporations do battle. (Bruce Nussbaum, "Winners. The Best Product Designs of the Year," Business Week, June 17, 1991, 62.)

Japan is the force to beat. The country is slated for another double-digit increase in capital spending, following a 17 percent jump in the fiscal year ended last March. (Monroe W. Karmin, "Lean times loom on the factory floor," U.S. News & World Report, Nov. 20, 1989, 72.)

The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere. ("Turning it Around," Electronic Engineering Times, October 14, 1991, S75.)

The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. "Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

Compaq has already seized opportunities in the features wars. (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

We won the intellectual battleground on how you think about trade. (Protectionist Paul R. Klugman of MIT in Christopher Farrell, "The Choice Isn't Free Trade or Protectionism," Business Week, May 6, 1991, 34.)

The 1990s will be the first decade of true global competition and global economic warfare, with three major players: the U.S., Japan, and Germany. Tremendous change - hyperchange - is the only certainty. (Rock, 1990, 71.)

Does your writer forget how the U.S. semiconductor industry was driven to its knees by Japanese targeting of the industry? (Rep. Ralph Regula, "Wake Up! U.S. Industry is Under Attack," Business Week, July 29, 1991, 8.)

Listen up! U.S. industries are being targeted, and the practice continues unabated! Alarmingly, technologies critical to America's defense are being lost. Nearly 50% of the high-tech weaponry used in Iraq was based on U.S. technology developed in the 1970s, the production of which was lost to foreign production in the trade wars of the 1980s. (Rep. Ralph Regula, "Wake Up! U.S. Industry is Under Attack," Business Week, July 29, 1991, 8.)

We don't meet, we have battles. (McColl of C&S/Sovran in Hawkins, 1991, 117.)

Gary Weiss,"In Trading Wars, This Swiss Bank is Anything but Neutral" Business Week,  June 10, 1991, 84.

Personal income will take another hit in July. (Cooper and Madigan, 1991C, 22.)

A price war among dealers has put the emphasis on keeping manufacturing costs down. (Eng, 1991, 78D.)

Hewlett-Packard is clearly in no mood to relinquish any segment of the global computer business without a fight. (Pomice and Cohen, 1991, 73.)

Users are seeing the emergence of a [multimedia] standards war. (Van Brussel, 1991, 6.)

The cola wars. (Visa ad in Business Week, October 27, 1986, 82.)

Collingwood, Harris. "Two Casualties of the Computer Wars," Business Week, May 27, 1991, 47.

Olivetti ... makes AT&T's entry in the IBM-compatible personal computer wars. ("AT&T Plugs In," 1986, 44.)

CEOs ... were in the trenches themselves during the takeover wars. (Teitelbaum, 1991, 73.)

The go-go 1980s. (Neff, 1991, 52.)

Back in 1989, ... most U.S. semiconductor makers were unconditionally surrendering the memory-chip market to the Japanese. (Magnusson, 1991, 34.)

Software makers [are] in a do-or-die marketing battle to win over increasingly sophisticated and demanding custiomers. (Michael Crawford, "No Nerds Need Apply," Canadian Business, January 1993, 46.) Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated. Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities. (Farrell, 1991, 73.)

On one multimedia team, Bajarin sees Microsoft, Tandy and possibly Nintendo lining up to take on Kaleida, with Apple, IBM and possible Sony.

[Pfizer's sponsored scientific studies] slammed rival remedies. (Pomice and Cohen, 1991, 66.)

'We're seeing the industry move in such a way that these two big forces are going to be really fighting it out.' ...

The battle will take place on the fronts of 'audio, video, voice CD-ROM, stereo, mass storage', [etc.] (Tim Bajarin, Executive VP of Creative Strategies Research Internation Inc. of Santa Clara, CA in Casselman, 1991, 18.)

The Battle of Britain is over, and Pfizer blitzed the competition. (Pomice and Cohen, 1991, 66.)

The target of this aggressive campaign -- Bayer AG, a $28 billion German goliath with a sizeable chunk of the cardiovascular drug market in Britain -- is about to have palpitations. (Pomice and Cohen, 1991, 66.)

This fall [Corel CEO Michael Cowpland] blindsided US competitors by launching a new version of CorelDRAW thatb does in one package for $695 what others sell separately for a total of $1,500 to $2,000. (Michael Crawford, "No Nerds Need Apply," Canadian Business, January 1993, 48.)

At last month's Semiconductor Outlook Forum, a semiconductor industry analyst at a New York investment company made the following prediction: "We are going to experience a shakeout in the desktop PC business over the next 12 months of unprecedented proportions." Not exactly news to our guys in the trenches at IBM, Digital Equipment and Wang. The bombs have already started dropping in those places.

Next in line: engineers on the semiconductor front. A retreat by the computer sector will leave them on the firing line. ...

No wonder the GIs in the trenches are nervous. "Nervous and Insecure. With More and More Companies Downsizing, EEs are Worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

Social Darwinism - Business as a Guerrilla War

It's a marketplace out there. In order to survive, let alone thrive and prosper, you've got to be a guerilla. (Levinson, 1989, 2.)

If you've got the personality of a successful guerilla marketer, you're already champing at the bit to unleash some of your newfound attack power. (Levinson, 1989, 16.)

The guerilla marketing attack is a sustained attack. Once started, you never stop attacking. You may vary your weapons, adding some, subtracting others, polishing others. (Levinson, 1989, 38.)

The green berets of the surgical selling world. (Pomice Cohen, 1991, 73.)

Social Darwinism - Business as a Gang War

Gould is known as a street fighter. (Zinn, 1991A, 38.)

[PC] manufacturers have started a new brawl. The latest battleground is features. No, the price wars haven't halted. But PC makers, rather than just slashing prices as they did last year, are throwing in new goodies. (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

The features game favors the industry giants that have the technical and financial wherewithal to add new touches without raising prices. The upshot: The top brands will continue to grab market share. (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

For much of the last decade, U.S. companies have been maligned as wimps that lacked the grit and gumption to stand up to Japanese and European rivals. As they cowered in th big shadows thrown off by the Siemenses and Matsuhitas of the world, American firms caved in to quarterly earnings pressures and skimperd on long-term technology investments, But lately, the derisive criticism has begun to ring hollow. Domestic corporations, perceived by many as the world's weaklings, have put on new muscle and become industrial warriors capable of blowing away even the most intimidating global competitors. (Pomice and Cohen, 1991, 65.)

Multinational software giants push their futuristic products with a 19th-century brand of killer capitalism. (Michael Crawford, "No Nerds Need Apply," Canadian Business, January 1993, 47.)

America's toughest companies ... display tenacity and innovation in beating up global foes. (Pomice and Cohen, 1991, 66.)

Pall, an industrial filter maker, has trounced Japanese competition. (Pomice and Cohen, 1991, 66.)

Thermo Electron aced out a European firm in paper recycling. (Pomice and Cohen, 1991, 66.)

The specter of an ever-expanding Thermo has Europe's industrial giants quaking. (Pomice and Cohen, 1991, 74.)

Pfizer is muscling a German drug giant. (Pomice and Cohen, 1991, 66.)

Hewlett Packard has routed Japanese rivals in laser printers. (Pomice and Cohen, 1991, 66.)

The moral of these stories is simple: Getting tough is the only way to thrive in today's global market. (Pomice and Cohen, 1991, 66.)

"Will Boeing Build a Behemoth to Defend Its Turf?" (Yang, 1991, 28.)

At first glance, it would appear to be sweet revenge on the Japanese corporate titans that have been beating up on their North American and European counterparts. ... More Japanese companies fell off the (Business Week Global 1000) list than those of any other country. (Neff, 1991, 52.)

The five [companies] profiled below ... display tenacity and innovation in beating up global foes. (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.)

Pall, an industrial filter maker, has trounced Japanese competition. Thermo Electron aced out a European firm in paper recycling. Pfizer is muscling a German drug giant. U.S. Surgical has stunned vaunted German medical instrument makers. And Hewlett-Packard has routed Japanese rivals in laser printers. The moral of these stories is simple: Getting tough is the only way to thrive in today's cutthroat global market. (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.)

Social Darwinism - Business as a Civil War

The financial civil war that swept across America in the past decade was a ripsnorting string of shoot-'em-ups like nothing ever seen on Wall Street or Main Street. Withering volleys of money shot back and forth as insurgents stormed one entrenched corporate position after another. Counting friendly and hostile deals, more than a third of the companies in the Fortune 500 industrials were swallowed up by other concerns or went private. ... Buyers shelled out an astounding $1.5 trillion, plus billions more in defensive maneuvers. ... Did they create new wealth for the whole economy...? ... No. (Faltermayer, 1991, 58.)

[Pfizer] muscled Istin into distribution by doubling its UK sales force to about 120 people. (Pomice and Cohen, 1991, 66.)

Social Darwinism - Business as Gladiatorial Combat

At the Vick School of Applied Merchandising: It was a gladiators' school we were in. Selling may be no less competitive now, but in the Vick program, strife was honored far more openly than today's climate would permit. Combat was the ideal - combat with the dealer, combat with the 'chiseling competitors,' and combat with each other. There was some talk about the 'team,' but it was highly abstract. Our success depended entirely on beating our fellow students, and while we got along when we met for occasional sales meetings the camaraderie was quite extracurricular.

Slowly, as our sales-to-calls ratios crept up, we gained in rapacity. Somewhere along the line, by accident or skill, each of us finally manipulated a person into doing what we wanted him to do. Innocence was lost.... (Whyte, ?, 47.)

"Global Gladiators. Battling Japan and Germany," ( U.S. News & World Report, October 28, 1991, 74.)

Social Darwinism - Business as a Holy War

The disagreements between the people who promote MRP II (Material Resource Planning) and the people who promote JIT (Just-in-Time) has almost become a holy war. The proponents of each side of the MRP-JIT war are declaring the other to be a loss to the true faith. However, when the smoke clears and the over used buzz words are quited there is one common goal that both have, and that is improving the operations of their company. (Wells, 1988, 39.)

Social Darwinism - Companies may do Battle

General Electric came under attack by the Japanese in the 70's on a broad front -- from steam turbines to TV's. Unlike many of its American competitors, GE responded early to the Pacific Basin manufacturing invasion. (Andrew, 1987, 3.)

The cost of doing battle with Airbus may be as stunning as the size of the superjumbo itself. (Yang, 1991, 29.)

Social Darwinism - Countries may do Battle

Why is the American electronics industry bogged down on the economic front? (Bellinger, 1991, S75.)

Industry after U.S. industry, from autos to semiconductors, is being beaten in world markets. (Carey, 1991, 128.)

Clearly, then, there is enormous potential for spectacular industry-wide improvement through the quality movement. But it would be a mistake to conclude that the battle is won, the wildly destructive export tide turned. U.S. firms, it should be noted, are still for the most part playing catch-up. The Japanese, relentless competitors, are not sitting still as U.S. industry accomplishes long-overdue reforms. (Alster, 1987, 64.)

The rise to power and dominance of world markets by Pacific Basin firms in industry after industry has been both swift and relentless. In particular, the prominence of Japanese manufacturing productivity has been nothing less than awesome. But many major Western world manufacturing companies are not backing away from this competition. In point of fact, several major multi-nationals, some U.S. based, others European, have successfully stepped up their efforts for profitable survival in the productivity battle. (Andrew, 1987, 50.)

Social Darwinism - Even Whole Continents may be Under Seige

"The Battle for Europe," Business Week, June 3, 1991, cover.

With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc. (Business Week, June 3, 1991, 2.)

"Fortress Europe." (Smith, 1989, 44.)

Europe's fearsome fortress is beginning to look like Swiss cheese. (Toy and Levine, 1991, 44.)

Unless the U.S. acts quickly, [the Eastern European] market will be taken by Germany and Japan. (Rock, 1990, 71.)

Social Darwinism - Whole Industries, Markets, and Continents can be Lost

The consumer industry ... we lost a long time ago. ... There are a number of people predicting that sometime in the 1991-92 time frame, our leadership position will shift to the Japanese specifically in computers; they will have a larger share of the world market than the U.S. Now that really bothers me. I think that this area is so critical to our effectiveness as a developed country, so critical to the health of our entire industrial base. (Charles E. Spock, president and CEO of National Semiconductors in Weber, 1990B, 56.)

Social Darwinism - A Country may go into Decline

Unless Uncle Sam invests more in the technologies of the future, [lawmakers, technopundits, and high-tech chief executives] warn, America's decline is as inevitable as the sunset. 'While the White House is debating ideology, other countries are eating our lunch,' fumes Senator Jeff Bingham (D-N.M.). (Carey, 1991, 128.)

Now, according to the industry-funded Council on Competitiveness, among others, there's sobering evidence of a decline in U.S. living standards. Even the Bush Administration admits to worry over the future. 'By the best measure of competitiveness -- income per capita -- the U.S. is still on top,' says John B. Taylor, a member of Bush's Council of Economic Advisers. 'But we may not be growing fast enough to provide for our children.' (Carey, 1991, 128.)

Social Darwinism - Battles are Always Taking Place

Every day around the world, corporations do battle. (Nussbaum, 1991, 62.)

Other marketplace battles [are] shaping up. (Foster, ?, 39.)

Social Darwinism - Our Troops in the Trenches Fight the Battles

Our 'trenches' are the labs, fabs and other engineering departments in which our readers ... work. If chief executive officers are generals, engineers are the equivalent of, well, military engineers. They devise the weapons, lay down the bridges and participate in strategies to bypass -- or march through -- the front line of the opposition. Like troops in the field, engineers in the trenches know their territory and have definite opinions about the larger theatre of operations -- their industry. (Bellinger, 1991, S4.)

The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere. (Bellinger, 1991, S75.)

The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. In the end the fallbacks may be an opportunity to regroup. (Bellinger, 1991, S45.)

Social Darwinism - Our Leaders may be Portrayed in the Trenches

CEOs ... were in the trenches themselves during the takeover wars. (Teitelbaum, 1991, 73.)

Social Darwinism - The Role/Non-Role of Government

[What] produces a healthy industry ... is unrestricted competition. (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84.)

The government should get out of the electronics industry. Charles Darwin and Adam Smith are what's required to make winners and losers. It is not raw materials, human beings, education, or government support that produces a healthy industry. It is unrestricted competition. (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84.)

Two hundred years after Treasury Secretary Alexander Hamilton helped set America on its path to greatness, the nation is still embroiled in a battle over the government's proper role in nurturing the country's industrial might. (Carey, 1991, 128.)

Social Darwinism - Business Schools Teach Rules of War

World War III is going to be fought on the shelves of your neighbourhood shopping center, and the Harvard Business School is a sneak preview of it. How its generals are prepared. The weapons and tactics they learn to use. How, fighting against each other, against humiliation and delusions of grandeur, they run each other down, yet somehow, desperately at times, seek to maintain at least the appearance of friendship. (Cohen, 1973, 8.)

This is an account of [the] education [of a class of 94 MBA students] to become lords over a new kind of army in a new kind of warfare, ready to take over from the military who have perfected their technology to the point where its use is guaranteed to leave nothing worth using it for. But since men will continue to be ambitious; since they will still want to be, they don't know what, except different, they will go on fighting for those things of which there aren't enough to go around -- money, love, land, praise, power and perquisites. (Cohen, 1973, 8.)

Social Darwinism - Business Strategies Help Competitors Survive

JIT offers the last chance for many organizations to survive and compete in the world market. (Myers, 1987, 38.)

JIT is our key to economic survival. (Myers, 1987, 30.)

Companies have used these insights either implicitly or explicitly to get the jump on the competition. (Foster, 1986, 37.)

Though our automative, appliance, electronics and other businesses have been sandbagged by JIT users, we are pulling away from the brink and beginning to regain lost ground through our own JIT strategies. (Myers, 1987, 30.)

Social Darwinism - Overall Strategic Aim: Dominate the Market

"Free-for-all: Japan, the U.S., and the EC are duking it out to determine who will dominate the New Europe -- and the New Century." (Business Week leader, June 3, 1991, 2.)

[Bausch & Lomb] revamped its R&D operation, pushed into the extended-wear market, and managed to capture a dominant share. ("Bausch & Lomb is Correcting its Vision of Research," 1987, 91.)

Merely being competitive is not enough in today's global markets. Rather, [a firm's] long-term success will depend upon [its] domination of markets.

The term competitive means a condition of parity or equality. ... In business as in sports, dominance increases the predictability of winning, whereas parity only increases competition. (Boznak, n.d., 207.)

Social Darwinism - Get and Hold the Competitive Edge

The competitive edge is a state of mind where you're always trying to outsmart the other guy. (Auerbach, 1991, 34.)

[Seek] a sustained competitive advantage. (Gellman, 1989, 93.)

I don't care if you're selling baseball tickets or shoes, a competitive edge is the name of the game today. (Auerbach, 1991, 29.)

Comparative trade advantage increasingly means doing things smarter and using sophisticated technology. This is not a secure advantage. Expertise and technology cannot be contained within national boundaries and they rapidly evolve to render yesterday's advantages obsolete. (Canadian Manufacturers' Association in Saint-Pierre, 1983, 31.)

To keep a step ahead of their competitors, industrialists must pay continuous attention to improving their technology management. For companies where managers understand this, technology will provide the key to an effective competitive advantage. (Canadian Manufacturers' Association in Saint-Pierre, 1983, 31.)

Social Darwinism - Match the Competition

Match the competition. (Charles E. Spock, Pres. and CEO of National Semiconductors in Weber, 1990B, 56.)

Keep up with ... foreign competition. (Corrigan, 1990, 70.)

Get the jump on the competition. (Foster, 1986, 37.)

The people who can pounce first are going to make money. (Weiss, 1991, 84.)

Social Darwinism - Advance! Gain new ground!

The latest Council on Competitiveness report [is called] Gaining New Ground. (Carey, 1991, 129.)

'American companies must quickly address the perception of their product quality in Eastern Europe or risk losing ground to European or Japanese competitors.' (? in Bachmann, 1990, 310.)

The world's largest market is up for grabs. While the Europeans and Americans are losing ground, the Japanese are coming on strong. ("The Battle for Europe," Business Week, June 3, 1991, cover.)

Social Darwinism - Globalize! Surround them! Cut them off!

A global firm which can shift cash flows from several countries to competitive activities in a given country may be able to underprice a multidomestic competitor, gain market share thereby, and, possibly, even drive a well-established but single-country oriented firm out of its market niche altogether. How does a multidomestic or multinational firm anticipate such competitive pressures and make appropriate responses before its cash and investment potentials are eroded? The answer often is, the firm must itself 'globalize' to survive. This is a key reason why firms desire to expand their strategic perceptions and to become 'more global.' (Spivey and Thomas, 1990, 88-9.) Social Darwinism - Attack! Meet the competition head on!

Bennett A. Brown ... the chairman of Citizens & Southern Corp. rejected a hostile takeover bid from NCNB Corp.... Even though [NCNB chairman Hugh L.] McColl [Jr.] told Brown that he had "launched his missiles," the brash, acquisitive McColl backed off with uncharacteristic meekness. (Hawkins, 1991, 116.)

'Pfizer always meets the competition head on,' says Marc Mayer, an analyst at Sanford C. Bernstein. (Pomice and Cohen, 1991, 68.)

While internecine strife hogged attention at home, the U.S. retreated in the far more important war of global competition. Biggest winner: Japan, where companies stay in fighting trim without having to listen for predator's footsteps. (Faltermayer, 1991, 59.)

Social Darwinism - Be aggressive! Scare off the competition!

Getting tough with Japan. (Buchanan and Macli, 1991, 80.)

Aggressive expansion drive. (Schroeder, 1991, 39.)

The competition is getting aggressive. (Costanza, 1988, 40.)

At the moment, declaring a winner in the superconductivity race is premature. ... 'I wouldn't call what they have done ominous, but it certainly is a sign of intensifying aggressiveness,' says Roland W. Schmitt, General Electric Co.'s chief scientist and chairman of the National Research Board. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

Aggression and the need to excel are looking for new ways to manifest themselves, and business, with its armies of functionaries, its prominent adversaries, its highly visible battlefields, is the perfect fit. (Cohen, 1973, 8.)

Aggressive management. (Mackay, 1988, 8.)

Social Darwinism - Hit them with strength! Turn back their attack! Give it everything you've got!

"What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)

Social Darwinism - Domination of Markets

Merely being competitive is not enough in today's global markets. Rather, [a firm's] long-term success will depend upon [its] domination of markets. Social Darwinism - The Globe as a Battlefield

Every day around the world, corporations do battle. (Nussbaum, 1991, 62.)

Social Darwinism - Predatory Business Philosophy

Moody's expects Wall Street in the 1990s to be marked by 'rapacious competition' that will lead to greater consolidation of the industry.

As a result, ... a number of firms that are not prepared for the global competition of the next decade are likely to be driven into mergers, undergo big realignments or fail.

The changes will bring with them a good deal of pain, the report said. (Eichenwald, 1990, C8.)


Social Darwinism - Dominance

"The term competitive means a condition of parity or equality. ... In business as in sports, dominance increases the predictability of winning, whereas parity only increases competition." (Boznak, n.d., 207.)

Social Darwinism - Tough Talk

The moral of these stories is simple: Getting tough is the only way to thrive in today's global market. (Pomice and Cohen, 1991, 66.)

Competition is tough. (Mandel, 1991, 38.)

Aggressive new PC prices. (Depke, 1991, 38.)

Under Icahn's plan..., [TWA's secured creditors are] angry that they'd get a haircut while unsecured creditors would collect $200 million. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

"We're growing more milittant," says Vito J. Iacovazzi, ... trustee for the equipment trust certificates. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

[Your] enemies thrive on competition. They're out to get you and get you good. ... Your enemies mean business, your business, your profits." (Levinson, 1989, 1.)

Social Darwinism - Market Domination

Pall's ability to expand and dominate in both the United States and Europe has been aided by duplaicate manufacturing facilities on both sides of the Atlantic. (Pomice and Cohen, 1991, 66.) Social Darwinism - Struggle for Survival

Be excellent or perish in the cutthroat competition of the free market. (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84-6.)

Aggression and the need to excel are looking for new ways to manifest themselves, and business, with its armies of functionaries, its prominent adversaries, its highly visible battlefields, is the perfect fit. (Cohen, 1973, 8.)

In that modern-day tribe called a corporation, it's still the survival of the fittest. And in the treacherous nineties, the fittest will certainly be the best informed. (Dow Jones ad in Business Week, Sept. 23, 1991, 33.)

The people who can pounce first are going to make money. (Weiss, 1991, 84.)

It's a marketplace out there. In order to survive, let alone thrive and prosper, you've got to be a guerilla. (Levinson, 1989, 2.)

Social Darwinism - Rules of The Road

Match the competition. (Charles E. Spock, Pres. and CEO of National Semiconductors in Weber, 1990B, 56.)

Get the jump on the competition. (Foster, 1986, 37.)

[Knock] the socks off the competition. (Peters and Waterman, 1982, 31.)

Keep up with ... foreign competition. (Corrigan, 1990, 70.)

Social Darwinism - A Competitive Edge

A competitive edge is the name of the game today. (Auerbach, 1991, 29.)

The competitive edge is a state of mind where you're always trying to outsmart the other guy. (Auerbach, 1991, 34.)

Social Darwinism - Zero-Sum Game

As the multimedia pie grows, vendors are racing to establish who will get the largest piece. (Van Brussel, 1991, 1.)

Users are seeing the emergence of a [multimedia] standards war. (Van Brussel, 1991, 6.)

You are surrounded. All around you are enemies vying for the same bounty [i.e., zero sum]. They're out to get your customers and your prospects, the good and honest people who ought to be buying what you're selling. These enemies are disguised as owners of small and medium-sized businesses.

Social Darwinism - Business as Predation

The people who can pounce first are going to make money. (Weiss, 1991, 84.)

Snapping up troubled, middle-market chains. (Schroeder, 1991, 39.)

Pierson [of Airbus] was aiming at Boeing's jugular. ... 'It would be the first time we would be able to go after their cash cow,' says John T. Leahy, Airbus' U.S. sales chief. (Yang, 1991, 28.)

Swallowing Chicago's Higbee Co. chain. (Schroeder, 1991, 39.)

Competition from the likes of Hewlett-Packard and Co. was eating CalComp's lunch. (Rayner, 1988, 29.)

IBM is fighting tooth and nail in the market position with Microsoft. (Van Brussel, 1991, 6.)

Increasingly, other spiritual legatees of [J.P.] Morgan are devouring the wards of bankruptcy court. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

[Your] enemies thrive on competition. They're out to get you and get you good. ... Your enemies mean business, your business, your profits." (Levinson, 1989, 1.)

The reason we lost in the automobile industry is that there are only three manufacturers. By comparison, the Japanese have 14 very competitive companies slashing one another's throat for market share. Each has to be excellent or perish in the cutthroat competition of the free market. Ditto in semiconductors. (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84-6.)

In the bloody arena of Chapter 11 [takeovers], kindness and mercy are scarce. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

Wall Street, which is still hunting for undervalued breakup candidates, is giving [GTE CEO Theodore F.] Brophy no respite. Despite a protective thicket of regulators, asset-rich and underleveraged phone companies such as GTE are no longer immune. ("Can GTE Keep Foiling the Raiders," 1987, 100.)

The King Kong of leveraged buyouts [was] the takeover of RJR Nabisco Inc. (Hawkins, 1991, 27.)

Increasingly, Japanese and American giants will have Europe to themselves. (Jonathan B. Levine, "Philips' Big Gamble," Business Week, August 5, 1991, 34.) [CEO Jan] Timmer will be riding a tiger as he strives to score big hits with his hot new products. The financially weakened Philips no longer has the financial muscle to absorb the kind of big loss it took on its bungled entry into VCRs in the early 1970s. The cash-cow lighting division that once was milked to fund research has had its margins trimmed in a price war with Siemens and General Electric. (Jonathan B. Levine, "Philips' Big Gamble," Business Week, August 5, 1991, 34.)

Social Darwinism - Business as Aggressive Sport

Gould ... revived its stagnating sales with hardball tactics. (Zinn, 1991A, 38.)

Food Lion stores and a union square off over scheduling policies. (Konrad, 1991, 40.)

"Free-for-all: Japan, the U.S., and the EC are duking it out to determine who will dominate the New Europe -- and the New Century." (Business Week leader, June 3, 1991, 2.)

Thermo Electron aced out a European firm in paper recycling. (Pomice and Cohen, 1991, 66.)

Last winter, Equitable was forced to mount a hard-charging campaign to combat rumors that it was insolvent. (Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.)

The specter of an ever-expanding Thermo has Europe's industrial giants quaking. (Pomice and Cohen, 1991, 74.)

Pfizer is muscling a German drug giant. (Pomice and Cohen, 1991, 66.)

When [Pall Corp.] recently confronted Asahi ... and Terumo, ... it was faced with one of the stiffest competitive challenges in its history. (Pomice and Cohen, 1991, 66.)

Like so many other vendors, Straus Computer Inc. has moved to Reduced Instruction Set Computing (RISC)-based technology which it hopes will help it go toe-to-toe with Tandem for its share of the worldwide fault-tolerant market. (Fuochi, 1991, 9.)

[Pfizer's sponsored scientific studies] slammed rival remedies. (Pomice and Cohen, 1991, 66.)

[Pfizer] muscled Istin into distribution by doubling its UK sales force to about 120 people. (Pomice and Cohen, 1991, 66.)

The target of this aggressive campaign -- Bayer AG, a $28 billion German goliath with a sizeable chunk of the cardiovascular drug market in Britain -- is about to have palpitations. (Pomice and Cohen, 1991, 66.)

Pfizer always meets the competition head on,' says Marc Mayer, an analyst at Sanford C. Bernstein. (Pomice and Cohen, 1991, 68.)

Pfizer's marketplace victories.... (Pomice and Cohen, 1991, 68.)

With a killer instinct for competition, it zeroes in on the [compounds] with the most potential in order to exploit weaknesses in rival products. (Pomice and Cohen, 1991, 68.)

U.S. Surgical may have frightened off competitive retaliation. (Pomice and Cohen, 1991, 73.)

Hewlett-Packard [is] packing a powerful punch. (Pomice and Cohen, 1991, 73.)

[HP's] profit margins have been chopped down to size by low-priced Asian imports. But the company is slugging back with proprietary products like. (Pomice and Cohen, 1991, 73.)

The unfriendly acquisition of Alleghany International Inc. by New York's Japonica Partners was a ripsnorter ending in management's overthrow. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

By 1989, more than 60 Far eastern clones were closing in on HP's market. In a lightning fast response, the Silicon Valley company struck back with cheap and technologically advanced machines. 'We hit them with a left, then a right hook,' says Richard Watts, Hewlett-Packard's director of worldwide sales and distribution for computer products. ... That fancy glovework ultimately landed pugnacious HP in the winner's corner. (Pomice and Cohen, 73.)

Intelsat is already under pressure to lower rates to compete with the fiber-optic cable networks that cross the oceans. And it's showing bruises as a result. (Vogel, 1991, 103.)

Intelsat won't give up its monopoly without a fight. (Vogel, 1991, 104.)

By 1989, more than 60 Far eastern clones were closing in on HP's market. In a lightning fast response, the Silicon Valley company struck back with cheap and technologically advanced machines. 'We hit them with a left, then a right hook,' says Richard Watts, Hewlett'Packard's director of worldwide sales and distribution for computer products. ... That fancy glovework ultimately landed pugnacious HP in the winner's corner. (Pomice and Cohen, 1991, 73.

Social Darwinism - Business As Street Fighting

Gould is known as a street fighter. (Zinn, 1991A, 38.)

Davis & Geck is likely to fiercely defend its slice of turf. (Pomice and Cohen, 1991, 73.)

Hewlett-Packard is clearly in no mood to relinquish any segment of the global computer business without a fight. (Pomice and Cohen, 1991, 73.)

“Will Boeing Build a Behemoth to Defend Its Turf?” (Yang, 1991, 28.)

Social Darwinism - Business as a Battle

For much of the last decade, U.S. companies have been maligned as wimps that lacked the grit and gumption to stand up to Japanese and European rivals. As they cowered in the big shadows thrown off by the Siemenses and Matsuhitas of the world, American firms caved in to quarterly earnings pressures and skimped on long-term technology investments, But lately, the derisive criticism has begun to ring hollow. Domestic corporations, perceived by many as the world's weaklings, have put on new muscle and become industrial warriors capable of blowing away even the most intimidating global competitors. (Pomice and Cohen, 1991, 65.)

The Battle of Britain is over, and Pfizer blitzed the competition. (Pomice and Cohen, 1991, 66.)

CEOs ... were in the trenches themselves during the takeover wars. (Teitelbaum, 1991, 73.)

Fortress Europe. (Smith, 1989, 44.)

"Mutimedia Battle Lines Drawn." (Van Brussel, 1991, 1.)

The players are choosing sides for the multimedia race.

On one multimedia team, Bajarin sees Microsoft, Tandy and possibly Nintendo lining up to take on Kaleida, with Apple, IBM and possible Sony.

'We're seeing the industry move in such a way that these two big forces are going to be really fighting it out.' ...

The battle will take place on the fronts of 'audio, video, voice CD-ROM, stereo, mass storage', [etc.] (Tim Bajarin, Executive VP of Creative Strategies Research Internation Inc. of Santa Clara, CA in Casselman, 1991, 18.)

Time Warner shareholders of all stripes ... sprang into action, setting off an avalanche of protest. (Judith H. Dobrzynski, "Time Warner Feels the Force of Shareholder Power," Business Week, July 29, 1991, 58.)

The cost of doing battle with Airbus may be as stunning as the size of the superjumbo itself. (Yang, 1991, 29.)

"The Battle for Europe." (Business Week, June 3, 1991, cover.)

The world's largest market is up for grabs. While the Europeans and Americans are losing ground, the Japanese are coming on strong. (Anon., "The Battle for Europe." 1991, Business Week, June 3, cover.)

It's a marketplace out there. In order to survive, let alone thrive and prosper, you've got to be a guerilla. (Levinson, 1989, 2.) Threatening [TWA bondholders] with a long, painful bankruptcy reorganization, Icahn initiated an eyeball-to-eyeball confrontation with bondholders and labor unions. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc. (Business Week, June 3, 1991, 2.)

The rise to power and dominance of world markets by Pacific Basin firms in industry after industry has been both swift and relentless. In particular, the prominence of Japanese manufacturing productivity has been nothing less than awesome. But many major Western world manufacturing companies are not backing away from this competition. In point of fact, several major multi-nationals, some U.S. based, others European, have successfully stepped up their efforts for profitable survival in the productivity battle. (Andrew, 1987, 50.)

Every day around the world, corporations do battle. (Nussbaum, 1991, 62.)

The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere. (Bellinger, 1991, S75.)

The green berets of the surgical selling world. (Pomice Cohen, 1991, 73.)

U.S. Surgical is counting on its clout with surgeons to keep rivals at bay. (Pomice and Cohen, 1991, 73.)

With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc. (Business Week, June 3, 1991, 2.)

World War III is going to be fought on the shelves of your neighbourhood shopping center, and the Harvard Business School is a sneak preview of it. How its generals are prepared. The weapons and tactics they learn to use. How, fighting against each other, against humiliation and delusions of grandeur, they run each other down, yet somehow, desperately at times, seek to maintain at least the appearance of friendship. (Cohen, 1973, 8.)

Time Warner was forced by a shareholder's revolt and regulatory pressure to turn tail. (Judith H. Dobrzynski, "Time Warner Feels the Force of Shareholder Power," Business Week, July 29, 1991, 58.)

A price war among dealers has put the emphasis on keeping manufacturing costs down. (Eng, 1991, 78D.)

[U.S. Surgical] has moved quickly to head off the competition. (Pomice and Cohen, 1991, 73.)

Given their take-no-prisoners approach to business, that seems like just the kind of skirmish that executives at U.S. Surgical would relish. (Pomice and Cohen, 1991, 73.)

The disagreements between the people who promote MRP II (Material Resource Planning) and the people who promote JIT (Just-in-Time) has almost become a holy war. The proponents of each side of the MRP-JIT war are declaring the other to be a loss to the true faith. (Wells, 1988, 39.)

Our 'trenches' are the labs, fabs and other engineering departments in which our readers ... work. If chief executive officers are generals, engineers are the equivalent of, well, military engineers. They devise the weapons, la down the bridges and participate in strategies to bypass -- or march through -- the front line of the opposition. Like trops in the field, engineers in the trenches know their territory and have definite opinions about the larger theatre of operations -- their industry. (Bellinger, 1991, S4.)

The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere. (Bellinger, 1991, S75.)

The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. In the end the fallbacks may be an opportunity to regroup. (Bellinger, 1991, S45.)

Why is the American electronics industry bogged down on the economic front? (Bellinger, 1991, S75.)

Bennett A. Brown ... the chairman of Citizens & Southern Corp. rejected a hostile takeover bid from NCNB Corp.... Even though [NCNB chairman Hugh L.] McColl [Jr.] told Brown that he had ‘launched his missiles,’ the brash, acquisitive McColl backed off with uncharacteristic meekness. (Hawkins, 1991, 116.)

Social Darwinism - Competition as Rugged Individualism

The Harvard Business School's blind faith in competition alienates its students from one another, driving them to the destructive selfishness, the "rugged individualism" that, for too long, has been mistaken for a mainspring of progress. (Cohen, 1973, 8.)

Social Darwinism - Struggle for Survival

"Be excellent or perish in the cutthroat competition of the free market." (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84-6.)

Social Darwinism - Business as a Battle World War III is going to be fought on the shelves of your neighbourhood shopping center, and the Harvard Business School is a sneak preview of it. How its generals are prepared. The weapons and tactics they learn to use. How, fighting against each other, against humiliation and delusions of grandeur, they run each other down, yet somehow, desperately at times, seek to maintain at least the appearance of friendship. (Cohen, 1973, 8.)

Social Darwinism - Survival of the Fittest

It's evolution. Successful firms will grow big, and smaller ones will shrivel and die. (Management specialist David Maister referring to firms of upwards of 800 lawyers, in Glaberson, 1986, 104.)

Today's manufacturing market is a truly world-wide market where only the world class manufacturers will survive. ... To achieve the dramatic results needed for world class competition, dramatic changes are needed in manufacturing philosophies and techniques. (Costanza, 1988, 38.)

If management really wants to be around in the nineties, something has to be done. We no longer are just competing with the company down the street. Today, the name of the game is global competition. Survival is what many businesses are facing. (Proud, 1987, 81.)

Everyone realizes only the fittest will survive. (British union official in Reimer, Blanca. 1991. "'Quite Frankly, Being Unemployed Stinks,'" Business Week, July 15, 44.)

For much of the last decade, U.S. companies have been maligned as wimps that lacked the grit and gumption to stand up to Japanese and European rivals. As they cowered in the big shadows thrown off by the Siemenses and Matsuhitas of the world, American firms caved in to quarterly earnings pressures and skimped on long-term technology investments, But lately, the derisive criticism has begun to ring hollow. Domestic corporations, perceived by many as the world's weaklings, have put on new muscle and become industrial warriors capable of blowing away even the most intimidating global competitors. (Pomice and Cohen, 1991, 65.)

The moral of these stories is simple: Getting tough is the only way to thrive in today's global market. (Pomice and Cohen, 1991, 66.)

Says [Borg-Warner's] CEO James Bere...: 'There's nothing like the survival mode to get humans moving.' (Faltermayer, 1991, 61.)

Moody's expects Wall Street in the 1990s to be marked by 'rapacious competition' that will lead to greater consolidation of the industry.

As a result, ... a number of firms that are not prepared for the global competition of the next decade are likely to be driven into mergers, undergo big realignments or fail.

The changes will bring with them a good deal of pain, the report said. (Eichenwald, 1990, C8.)

Social Darwinism - Business as Street Fighting

The five [companies] profiled below ... display tenacity and innovation in beating up global foes.  (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.) 
At first glance, it would appear to be sweet revenge on the Japanese corporate titans that have been beating up on their North American and European counterparts.  ... More Japanese companies fell off the (Business Week Global 1000) list than those of any other country. (Neff, 1991, 52.)
Gould is known as a street fighter. (Zinn, 1991A, 38.)
[PC] manufacturers have started a new brawl. The latest battleground is features. No, the price wars haven't halted. But PC makers, rather than just slashing prices as they did last year, are throwing in new goodies. (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

Social Darwinism - Business as Aggressive Sport

Gould ... revived its stagnating sales with hardball tactics.  (Zinn, 1991A, 38.)
[Pfizer's sponsored scientific studies] slammed rival remedies. (Pomice and Cohen, 1991, 66.)

By 1989, more than 60 Far eastern clones were closing in on HP's market. In a lightning fast response, the Silicon Valley company struck back with cheap and technologically advanced machines. 'We hit them with a left, then a right hook,' says Richard Watts, Hewlett Packard's director of worldwide sales and distribution for computer products. ... That fancy glovework ultimately landed pugnacious HP in the winner's corner. (Pomice and Cohen, 1991, 73.)

Pall, an industrial filter maker, has trounced Japanese competition. Thermo Electron aced out a European firm in paper recycling. Pfizer is muscling a German drug giant. U.S. Surgical has stunned vaunted German medical instrument makers. And Hewlett-Packard has routed Japanese rivals in laser printers. The moral of these stories is simple: Getting tough is the only way to thrive in today's cutthroat global market. (Eva Pomice and Warren Cohen, "The Toughest Companies in America," U.S. News & World Report, October 28, 1991, 66.)

Social Darwinism - Business as Predation

In the age of information, survival still depends on hunters and gatherers. (Ad in Business Week for Dow Jones Information Services, Sept. 23, 1991, 33.)

Companies have used these insights either implicitly or explicitly to get the jump on the competition. (Foster, 1986, 37.)

Damon Corp. was ripe for the picking. (Amy Barrett, "A Wake-Up Call for the M&A Crowd," Business Week, July 26, 1993, 26.)

The people who can pounce first are going to make money. (Equities-technology manager Hadar Pedhazur of UBS Securities Inc., in Gary Weiss, "In the Trading Wars, This Swiss Bank is Anything but Neutral," Business Week, June 10, 1991, 84.)

We'd all kill for that kind of savings. (Robert Benedict, head of applied mathematics in Goodyear's process research laboratory in Art Zimmerman, "These Materials are Downright Precocious," Business Week, Sept. 16, 1991, 112J.)

"He who hesitates is lunch." (Olive, 1991, 15.)

"While the White House is debating ideology, other countries are eating our lunch," fumed Senator Jeff Bingham (D-N.M.). (Carey, 1991, 128.)  

Competition from the likes of Hewlett-Packard and Co. was eating CalComp's lunch. (Rayner, 1988, 29.)

In the 90s, let's do lunch may have a slightly different meaning. (BC Tel ad on KVOS TV, Nov. 8, 1991.)

The U.S. company [HP] has snagged deals with ... (Pomice and Cohen, 1991, 73.)
Mutual funds hungry for high yields are snatching up junk bonds as quickly as they hit the market.  (Amy Barrett, "A Wake-Up Call for the M&A Crowd," Business Week, July 26, 1993, 26.)
Already, super-regionals such as Banc One and First Union have been running up huge market share gains by sticking to the business basics while gobbling up competitors. (Hawkins, 1991, 117. [On McColl of C&S/Sovran])
The features game favors the industry giants that have the technical and financial wherewithal to add new touches without raising prices. The upshot: The top brands will continue to grab market share.  (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

Social Darwinism - Business as a Battle

Every day around the world, corporations do battle. (Bruce Nussbaum, "Winners. The Best Product Designs of the Year," Business Week, June 17, 1991, 62.)

We don't meet, we have battles. (McColl of C&S/Sovran in Hawkins, 1991, 117.)

Japan is the force to beat. (Monroe W. Karmin, "Lean times loom on the factory floor," U.S. News & World Report, Nov. 20, 1989, 72.)

We're seeing the industry move in such a way that these two big forces are going to be really fighting it out. ... The battle will take place on the fronts of 'audio, video, voice CD-ROM, stereo, mass storage'. (Tim Bajarin, Executive VP of Creative Strategies Research Internation Inc. of Santa Clara, CA in Casselman, 1991, 18.)

This is an account of [the] education [of a class of 94 MBA students] to become lords over a new kind of army in a new kind of warfare, ready to take over from the military who have perfected their technology to the point where its use is guaranteed to leave nothing worth using it for. But since men will continue to be ambitious; since they will still want to be, they don't know what, except different, they will go on fighting for those things of which there aren't enough to go around -- money, love, land, praise, power and perquisites. (Cohen, 1973, 8.)

At the Vick School of Applied Merchandising: It was a gladiators' school we were in. Selling may be no less competitive now, but in the Vick program, strife was honored far more openly than today's climate would permit. Combat was the ideal - combat with the dealer, combat with the 'chiseling competitors,' and combat with each other. There was some talk about the 'team,' but it was highly abstract. Our success depended entirely on beating our fellow students, and while we got along when we met for occasional sales meetings the camaraderie was quite extracurricular.

Slowly, as our sales-to-calls ratios crept up, we gained in rapacity. Somewhere along the line, by accident or skill, each of us finally manipulated a person into doing what we wanted him to do. Innocence was lost.... (Whyte, ?, 47.)

The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. "Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

Compaq has already seized opportunities in the features wars. (Catherine Arnst, "PC Land's Little Guys Get Slaughtered," Business Week, Feb. 15, 1993, 105.)

General Electric came under attack by the Japanese in the 70's on a broad front -- from steam turbines to TV's. Unlike many of its American competitors, GE responded early to the Pacific Basin manufacturing invasion. (Andrew, 1987, 3.)

The cost of doing battle with Airbus may be as stunning as the size of the superjumbo itself. (Yang, 1991, 29.)

We won the intellectual battleground on how you think about trade. (Protectionist Paul R. Klugman of MIT in Christopher Farrell, "The Choice Isn't Free Trade or Protectionism," Business Week, May 6, 1991, 34.) Listen up! U.S. industries are being targeted, and the pratice continues unabated! Alarmingly, technologies critical to America's defense are being lost. Nearly 50% of the high-tech weaponry used in Iraq was based on U.S. technology developed in the 1970s, the production of which was lost to foreign production in the trade wars of the 1980s. (Rep. Ralph Regula, "Wake Up! U.S. Industry is Under Attack," Business Week, July 29, 1991, 8.)

Personal income will take another hit in July. (Cooper and Madigan, 1991C, 22.)
A price war among dealers has put the emphasis on keeping manufacturing costs down. (Eng, 1991, 78D.)
Hewlett-Packard is clearly in no mood to relinquish any segment of the global computer business without a fight. (Pomice and Cohen, 1991, 73.)
Users are seeing the emergence of a [multimedia] standards war. (Van Brussel, 1991, 6.)

The cola wars. (Visa ad in Business Week, October 27, 1986, 82.)

Collingwood, Harris. 1991. "Two Casualties of the Computer Wars," Business Week, May 27, 47.

"The Battle for Europe," Business Week, June 3, 1991, cover.

With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc. (Business Week, June 3, 1991, 2.)

"Fortress Europe." (Smith, 1989, 44.)

Europe's fearsome fortress is beginning to look like Swiss cheese. (Toy and Levine, 1991, 44.)

Bennett A. Brown ... the chairman of Citizens & Southern Corp. rejected a hostile takeover bid from NCNB Corp.... Even though [NCNB chairman Hugh L.] McColl [Jr.] told Brown that he had "launched his missiles," the brash, acquisitive McColl backed off with uncharacteristic meekness. (Hawkins, 1991, 116.)

Every day around the world, corporations do battle. (Nussbaum, 1991, 62.)

Other marketplace battles [are] shaping up. (Foster, ?, 39.)

Olivetti ... makes AT&T's entry in the IBM-compatible personal computer wars. ("AT&T Plugs In," 1986, 44.)
At last month's Semiconductor Outlook  Forum, a semiconductor industry analyst at a New York investment company made the following prediction: "We are going to experience a shakeout in the desktop PC business over the next 12 months of unprecedented proportions." Not exactly news to our guys in the trenches at IBM, Digital Equipment and Wang. The bombs have already started dropping in those places. 

Next in line: engineers on the semiconductor front. A retreat by the computer sector will leave them on the firing line. ...

No wonder the GIs in the trenches are nervous. "Nervous and Insecure. With More and More Companies Downsizing, EEs are Worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

Clearly, then, there is enormous potential for spectacular industry-wide improvement through the quality movement. But it would be a mistake to conclude that the battle is won, the wildly destructive export tide turned. U.S. firms, it should be noted, are still for the most part playing catch-up. The Japanese, relentless competitors, are not sitting still as U.S. industry accomplishes long-overdue reforms. (Alster, 1987, 64.)

The rise to power and dominance of world markets by Pacific Basin firms in industry after industry has been both swift and relentless. In particular, the prominence of Japanese manufacturing productivity has been nothing less than awesome. But many major Western world manufacturing companies are not backing away from this competition. In point of fact, several major multi-nationals, some U.S. based, others European, have successfully stepped up their efforts for profitable survival in the productivity battle. (Andrew, 1987, 50.)

"Global Gladiators. Battling Japan and Germany," ( U.S. News & World Report, October 28, 1991, 74.)

The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. In the end the fallbacks may be an opportunity to regroup. (Bellinger, 1991, S45.)

If you've got the personality of a successful guerilla marketer, you're already champing at the bit to unleash some of your newfound attack power. (Levinson, 1989, 16.)

The guerilla marketing attack is a sustained attack. Once started, you never stop attacking. You may vary your weapons, adding some, subtracting others, polishing others. (Levinson, 1989, 38.)

Social Darwinism - Win/Lose

To all ... the many unnamed heroes and heroines of marketing wars..., I ... urge you onward to victory. (Levinson, 1989, viii.)

Pfizer's marketplace victories.... (Pomice and Cohen, 1991, 68.)

Many Europeans look to the Japanese conquest of industrial America as a cautionary tale. (Powell, 1991, 33.)

A winning attitude. (Auerbach, 1991, 38.)

The Psychology of Winning. (Auerbach, 1991, 47.)

Dr. Robert Haas. Eat to Win. The Sports Nutrition Bible.

A player - or employee - who gives his or her all, who is willing to pay whatever price it takes to succeed, is a winner regardless of who wins the game or what the standings are at the end of the year, or whether a particular project succeeds or not.

It's a lot more fun when you're winning. The feelings are all positive - excitement, stimulation, challenge, reward, delight. motivation, and anticipation. The feelings can be negative when you're losing - stress, anger, procrastination, rejection, and resentment. I say 'can' because they don't have to be. You can learn a lot from losing. (Auerbach, 1991, 47.)

The consumer industry ... we lost a long time ago. ... There are a number of people predicting that sometime in the 1991-92 time frame, our leadership position will shift to the Japanese specifically in computers; they will have a larger share of the world market than the U.S. Now that really bothers me. I think that this area is so critical to our effectiveness as a developed country, so critical to the health of our entire industrial base. (Charles E. Spock, president and CEO of National Semiconductors in Weber, 1990B, 56.)

Social Darwinism - Our Competitor is our Enemy

Cost accounting is enemy number 1 of production. (Eliyahu M. Goldratt in Tatikonda, 1988, 1.)

Social Darwinism - Zero-Sum Game

If there's more than one company in your business, somebody is winning and somebody is losing, just like in the NBA. Somebody's got a bigger share of the market, somebody is making more money, somebody is beating someone else. Auerbach, 1991, 30.) 

This is the heart of our fundamental problem. ... Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. A zero-sum game is any game where the losses exactly equal the winnings. All sporting events are zero-sum games. For every winner there is a loser, and winners can only exist if losers exist. What the winning gambler wins, the losing gambler must lose. (Thurow, 1981, 11.)

The guerilla marketing attack is not just an exercise. It's a real battle, and there are winners and losers. Now you know the personality of the winners. (Levinson, 1989, 38?)

Social Darwinism - America is losing

Industry after U.S. industry, from autos to semiconductors, is being beaten in world markets. (Carey, 1991, 128.)

While internecine strife hogged attention at home, the U.S. retreated in the far more important war of global competition. Biggest winner: Japan, where companies stay in fighting trim without having to listen for predator's footsteps. (Faltermayer, 1991, 59.)

The world's largest market is up for grabs. While the Europeans and Americans are losing ground, the Japanese are coming on strong. ("The Battle for Europe," Business Week, June 3, 1991, cover.)

Unless Uncle Sam invests more in the technologies of the future, [lawmakers, technopundits, and high-tech chief executives] warn, America's decline is as inevitable as the sunset. 'While the White House is debating ideology, other countries are eating our lunch,' fumes Senator Jeff Bingham (D-N.M.). (Carey, 1991, 128.)

Now, according to the industry-funded Council on Competitiveness, among others, there's sobering evidence of a decline in U.S. living standards. Even the Bush Administration admits to worry over the future. 'By the best measure of competitiveness -- income per capita -- the U.S. is still on top,' says John B. Taylor, a member of Bush's Council of Economic Advisers. 'But we may not be growing fast enough to provide for our children.' (Carey, 1991, 128.)

Unless the U.S. acts quickly, [the Eastern European] market will be taken by Germany and Japan. (Rock, 1990, 71.)

The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere. (Bellinger, 1991, S75.)

Social Darwinism - Dominate Global Markets

[Bausch & Lomb] revamped its R&D operation, pushed into the extended-wear market, and managed to capture a dominant share. ("Bausch & Lomb is Correcting its Vision of Research," 1987, 91.)

Merely being competitive is not enough in today's global markets. Rather, [a firm's] long-term success will depend upon [its] domination of markets.

The term competitive means a condition of parity or equality. ... In business as in sports, dominance increases the predictability of winning, whereas parity only increases competition. (Boznak, n.d., 207.)

Social Darwinism - Aggressiveness Pays off

'Pfizer always meets the competition head on,' says Marc Mayer, an analyst at Sanford C. Bernstein. (Pomice and Cohen, 1991, 68.)

Getting tough with Japan. (Buchanan and Macli, 1991, 80.)

Aggressive expansion drive. (Schroeder, 1991, 39.)

The competition is getting aggressive. (Costanza, 1988, 40.)

At the moment, declaring a winner in the superconductivity race is premature. ... 'I wouldn't call what they have done ominous, but it certainly is a sign of intensifying aggressiveness,' says Roland W. Schmitt, General Electric Co.'s chief scientist and chairman of the National Research Board. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

Aggression and the need to excel are looking for new ways to manifest themselves, and business, with its armies of functionaries, its prominent adversaries, its highly visible battlefields, is the perfect fit. (Cohen, 1973, 8.)

Aggressive management. (Mackay, 1988, 8.)

Social Darwinism - Zero-sum Conceptions of Business

"If there's more than one company in your business, somebody is winning and somebody is losing, just like in the NBA. Somebody's got a bigger share of the market, somebody is making more money, somebody is beating someone else." (Auerbach, 1991, 30.)

"This is the heart of our fundamental problem. ... Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. A zero-sum game is any game where the losses exactly equal the winnings. All sporting events are zero-sum games. For every winner there is a loser, and winners can only exist if losers exist. What the winning gambler wins, the losing gambler must lose." (Thurow, 1981, 11.)

Social Darwinism - A Winning Attitude

"A player - or employee - who gives his or her all, who is willing to pay whatever price it takes to succeed, is a winner regardless of who wins the game or what the standings are at the end of the year, or whether a particular project succeeds or not.

"It's a lot more fun when you're winning. The feelings are all positive - excitement, stimulation, challenge, reward, delight. motivation, and anticipation. The feelings can be negative when you're losing - stress, anger, procrastination, rejection, and resentment. I say 'can' because they don't have to be. You can learn a lot from losing." (Auerbach, 1991, 47.)

"The guerilla marketing attack is not just an exercise. It's a real battle, and there are winners and losers. Now you know the personality of the winners." (Levinson, 1989, 38?)

Systems Integration

Computers represent a major change in the ways facilities conduct business. Competent systems can help care providers plan care, document it and provide sound information to administration for decision-making. Computer systems are increasingly necessary to bill for services. And the integration of these clinical and administrative functions is a major reason to upgrade systems. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Suicide

Studies found a disproportionately high number of unemployed people committing suicide and an even higher proportion among parasuicide. (Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 11.)


Sales Force Automation

[A Yankee Group] survey asked respondents to point to the functional areas that they anticipate would be the most impacted by systems integration projects over the next three years. Sales was number one, followed by customer service. This is a significant reversal of priorities from the past three years. The study found that while IT systems for customer service had led the list of areas most benefited by systems integration projects since 1995, sales force automation projects had followed in a distant fifth place. The confluence of two factors, the push for global sales growth and the introduction of robust technology‑enabled selling tools, have brought about the change. (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)

As product cycles get shorter and markets get more competitive, companies that effectively employ best‑of‑breed customer acquisition and retention tools hold substantial advantage. The tricky part is that as companies integrate their internal operations and business partners to create the extended enterprise and fuel global sales growth, customer management processes must adapt to new selling models, and those technologies must seamlessly interface with existing enterprise information systems. It is clear that systems integration projects that are now on deck center on generating additional sales from existing customers and from new customers ‑‑ using new channels or more productive existing channels. (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)


Systems Integrators

Systems integrators develop, build and integrate the systems, the software applications, and communication and computer networks that underpin the IT strategy. They are also called upon to educate and transfer knowledge back to their customer ‑‑ the CIO or LOB manager. An outsource firm manages and maintains IT systems, networks and applications, usually under long‑term contract for a client firm. In many instances, the term "systems integrator" is used loosely, and imprecisely, for the entire genre of third‑party IT service providers. (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)

There are perhaps three reasons why you, the corporate IT customer, would consider partnering with a systems integrator. First, as in most private sector institutions, you face a tsunami of challenges every day in your own market segment. New forms of competition and global competitors, periodic cost pressures, market collapses, mergers and consolidations, and the need to focus on and be tied to the firm's core business processes are probably resonant themes for many of you.

Second, you are beset by the rapid pace of technological change. Not competitively keeping up with the best practices in your industry, in a cost‑efficient manner, is perhaps unacceptable to your management. Newer technologies, faster IT lifecycles, Year 2000 and EMU compliance, scarcity of IT talent, and that three‑lettered hydra TCO ‑‑ or total cost of ownership of IT resources and associated lifecycle support ‑‑ are all primed to put the kibosh on your best‑laid plans and keep you up nights anticipating the worst.

Finally, if you are the LOB manager or a corporate executive, your opinion of your IT organization's ability to deliver the goods when it counts ‑‑ at or under budget ‑‑ has long been pejorative. Your experience perhaps leads you to believe that IT managers are not always on the same page when it comes to scope creep, strict budgetary controls, uncompromising service levels, reduced cycle times, or even shared understanding of what it takes to retain the loyalty of customers. You, too, lay awake at night and wonder if your IT group's vision of what you need is, well, what you need.

The bottom line: The need for sustained business growth and operational excellence mandates the use of external IT service providers and our Yankee Group surveys corroborate the fact that corporate buyers will continue to pay a premium for these purchased services. (Gopi Bala, “Global Sourcing,” World Trade, May 1998.)

Social Darwinism

In the next few years, as the airline shakeout on the Continent continues, the weaker ones will disappear and the stronger may be more willing to bargain, confident that they can survive in a more open and competitive environment. (Andrea Rothman, "U.S. to World: Airline Deals Hinge on Open Skies," Business Week, 11 January 1993, 46.)


Technology - Boosters

Ah, yes, The Bard might well have been enamored with computers had he been alive today. (Richard Angell, "Graphics and Memory: To CAD or not to CAD?" Printed Circuit Design, April 1987, 8.)

Technology - Paradoxes

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. (David Kahn, "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 1991, 5.)

Technology Transfers

The U.S. is selling its technology to overseas companies -- ... once the company is sold, the technology emigrates, leaving the U.S. dependent on other countries for vital technology. ("Turning it Around," Electronic Engineering Times, October 14, 1991, S75.)

Time to Market

Rapidly shifting consumer tastes and increased global competition necessitate short product design cycles and responsive manufacturing facilities; economies of scope replace economies of scale. (Warner, 1987, 55.)

Technological Restructuring

Forced upon business by unprecedented global competition and financial turbulence, the change is so swift and powerful that it is churning across the business landscape with the force of an army of bulldozers. American companies have started the huge task of rebuilding themselves from the ground up, erecting a sleep new operating architecture to replace the unwieldy processes of the past. ... Their aim: to produce streamlined, combative concerns that can withstand the frenetic, competitive pace of the late '80s. (Russell, 1987, 46.)

Technological Restructuring - Global Integration

Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated. Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities. (Farrell, 1991, 73.)

Time to Market

'Unless American firms improve their ability to reach out and bring technology to market rapidly, U.S. competitiveness will continue to erode -- no matter how ambitious or far-reaching government technology policy is,' the Council on Competitiveness warns. (Carey, 1991, 129.)


Time to Market

"What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)

He who hesitates is lunch. (Art Zimmerman, "These Materials are Downright Precocious," Business Week, Sept. 16, 1991, 112J; Olive, 1991, 15.)

If it works, it's obsolete. (Gellman, 1989, 93.)

Rapidly shifting consumer tastes and increased global competition necessitate short product design cycles and responsive manufacturing facilities; economies of scope replace economies of scale. (Warner, 1987, 55.)

Competing in time is a new idea that is changing the practice of management in profound ways. Many managers now believe that time is becoming an important basis for competitive advantage. Retailers, manufacturers, insurers and bankers have been able to cut product development cycles and delivery schedules by 90 per cent or more. (Gellman, Quick Response is the New Competitive Edge, 1990, 25.)

In the 1990s, 'time to market' will be the clarion call that drives the electronics industry. (Corrigan, 1990, 68.)

Established firms want to move faster. They want to improve mainstream business performance, but they also want to shift into newstreams quickly, to speed up cycle time -- the time it takes to implement and commercialize new technologies. (Bachmann, 1990, 312.)

The firm that is first to market often can command premium pricing because of its de facto monopoly. Early entrants are able to achieve volume break points in purchasing and production sooner than laggards, and they gain market share. (Bachmmann, 1990, 312.)

What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.' (Weber, Battle Cry of the '90s, 1990, 80.)

Technology, Appropriate - See Appropriate Technologies

Time to Market "What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)


Technology - Benefits

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

Technological Restructuring - Questions about the Automation of Work

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. (David Kahn, "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, 16 Sept. 1991, 5.)

Technological Restructuring - Obsolescence of Workers

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Technological Restructuring - New Technology Not Creating Jobs

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald, "A Remarkable Job Machine," Business Week, 25 June 1984, 45.)

Technological Restructuring - Fate of Employees

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)


Technological Restructuring - Employment Forecasts

Overall, the U.S. is undergoing shifts in employment similar to those that have taken place regularly since the industrial revolution. When millions of jobs were lost on farms, new ones in industries such as steel and textiles grew up. The expansion of services and the shrinkage of some older occupations now are signs of the same natural growth and aging process. As long as American business can maintain its flexibility and innovative spirit, the number of Americans at work should continue to grow. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Technological Restructuring

Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: “Restructuring will be a way of life for a long, long time." (Russell, 1987, 47.)


Technological Restructuring - Payroll Gains

Workers who use computers earn an average of 10% to 15% more than those who don't, even for the same job. Secretaries who use computers, for instance, enjoy a premium of up to 30%. (Business Week, June 14, 1993, 68.)

Temporary Staff - See Employment Trends - The Rise of Temporary Staff

Technological Restructuring - Impact on Workers

Job growth is barely sufficient to support the pace of income and spending necessary to guarantee the recovery's survival. Incomes are already stretched thin, as consumers try to pay off burdensome debts and replenish their skimpy savings. (James C. Cooper and Kathleen Madigan. 1991. "Recovery-Room Report: The Patient is Still feeling Weak," Business Week,. Sept. 23, 31.)

Revolutions are always bloody, and the productivity revolution is no exception. As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the economy grew by 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder why so many Americans are distressed: They see their paychecks lagging inflation and they worry about joining their families and friends in the ranks of the unemployed. To these folks, the productivity revolution is a threat, not a boon. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Technological Restructuring - Inevitability

The only way American manufacturing can revive is by becoming capital-intensive instead of labor-intensive. That means using all kinds of advanced technology, new materials, and so on. (Gina Goldstein. 1990. "Joseph F. Coates: Engineering in the Year 2000," Mechanical Engineering, October, 79.)

Technological Restructuring - Impact on Workers

Disgruntled employees don't dare leave their posts in 1991. There might not be another job down the road. So they stay and gripe. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S52.)

Technology - Beneifts

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

Technology - Costs

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. David Kahn. 1991.

"Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 5. 

Technological Restructuring - Technological Displacement

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

What happens to laid-off workers? How long are they likely to stay unemployed? What are their chances of finding similar work? How will their new pay compare with former earnings? Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 24. Perhaps the most striking aspect of the latest [Bureau of Labor Statistics] survey results is the downward mobility of so many workers. The median nominal wage of reemployed workers declined by 11.8%. Over 40% of workers back at full-time jobs were earning less than they had on their old ones, and more than 25% suffered pay cuts of 20% or more. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 1991, 24.)

Technological Restructuring - European Experience

"There was such hope for the single market," laments Alcatel's [Chairman Pierre] Suard. "Now, people see it's here, but unemployment continues to rise. It's extremely dangerous." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Technological Restructuring - Costs - Impact on Employment

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.)

Although the number of people in high-tech occupations will continue to grow, it will be dwarfed by jobs requiring little or no higher education. An additional 53,000 computer technicians will be needed by 1995, but business will be looking for 800,000 building custodians. Observed Stanford University Researchers Russell Rumberger and Henry Levin in a recent study: "Neither high-technology industries nor high-technology occupations will supply many new jobs during the next decade." John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.

Technological Restructuring - Unions

The plight of the once highly paid but now displaced workers has spawned an exceptionally varied response. Some critics maintain that the heavily unionized employees have simply priced themselves out of jobs. Says Marc Bendick, senior research associate at Washington's Urban Institute: "The supergood industrial jobs, which pay superwages for relatively low skills, will disappear because of competitive pressures." To others, the laid-off employees are a national crisis. Says Chrysler Chairman Lee Iacocca: "To keep telling the people out of work in Pittsburgh or Detroit that they should become computer technicians or go into a service business is just a cruel hoax." (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Technological Restructuring - Employees must change

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)

Supposed to," Business Week, October 21, 23.)

Technological Restructuring

A shakedown is rocking the industry. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)



Training - Training does not help

On the face of it, the case for generous public support for training is strong. Unskilled people are much more likely to be out of work than skilled ones: if only their qualifications could be improved, they might find jobs more readily. Not only would they benefit, but so would the economy as a whole. A better trained workforce would be a more productive one; so more training ought to mean not just lower unemployment but also faster growth and higher living standards. Unions like training programmes because they can use them to push up wages. Academics like them because they increase the demand for education. Parents like them because they give out-of-work, out-of-school youths something to do. Prophets of post-modern society praise them as part of an ethic of life-long learning. And employers don't mind them because the public pays the bill. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In a growing body of research, economists have compared groups of unemployed people who enter government training schemes with similar groups who do not. In almost every case, these studies have found that the schemes have failed to improve either the earnings or the employment prospects of their clients. After surveying the results of various broadly-based training programmes for unemployed adults, the training-friendly OECD was forced to conclude in 1994 that there is "remarkably meagre support for the hypothesis that such programmes are effective." ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In the United States, the Department of Labour runs $5 billion-worth of elaborate training schemes directed at the disadvantaged. How much do they help the clientele? "Zero is not a bad number," concludes James Heckman of the University of Chicago, who directed a government-financed study of the Job Training Partnership Act, America' largest such programme. It found that, for those aged under 21, training had no effect at all, and may even have caused young men to lose earnings. ... There is nothing new about this. A study of 22 pre-1977 training programmes for the poor found that while women saw some increases in earnings. the results were mixed, or even negative, for adult men and young people. ... Britain's experience is similar. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

Back in the 1980s, Australia's Bureau of Labour Market Research did long-term, rigorous studies of its government job-creation schemes. The results were so embarrassingly bad, claims Judith Sloan of the National Institute of Labour Research, that the bureau was shut down. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

A final piece of evidence comes from Sweden, which also spend lavishly on training the unemployed, and is beginning to wonder whether the policy is worth it. Sweden's parliament commissioned three economists to study the country's long-admired "active labour-market programmes", including job-search assistance, training and relief work. The authors concluded in 1995 that while retraining might raise, slightly, the chances of employment, it does so at higher cost, and to less effect, than simple job-search advice. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

The OECD reported research that evaluated four German programmes -- two offering further training and two retraining for the unemployed. The result: "No type of training was found to have any significant impact on the flows out of either short- or long-term unemployment, nor on the flows into unemployment." ("Training and Jobs: What Works?" Economist, 6 April 1996, 21.)

Technological Restructuring - Apologists

Careers come and go. Jobs change. This is nothing new. It's just happening far faster than ever before. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., frontispiece.)

Work is going global. We're entering the Information Age. The economy is shifting more and more towards services, and toward knowledge work. Before long, top management absolutely won't be able to run things the old way, even if it desperately wants to. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

New technologies -- especially computers and telecommunications -- have already created intense, worldwide competition for business. Soon, competition for your very own job could come from practically anywhere on earth. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Careers have already quit working liken they used to. That's not really anybody's fault. But employees and organizations are very much at fault if they, too, don't change in order to adapt. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

It does no good whatsoever to complain or be bitter about what's happening. In fact, such behavior can only do us harm. We waste precious energy if we resist, get angry, or give in to grief over all that's being lost. We jeopardize our future if we cling to old assumptions and expectations about how careers should operate.

Frankly, the world doesn't care about our opinions. Or our feelings. The world rewards only those of us who catch on to what's happening, who invest our energy in finding and seizing the opportunities brought about by change. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. (Dallas, TX: Pritchett & Associates, introduction.)

Change always comes bearing gifts. Considering the scope and speed of change these days, there will be precious gifts -- many priceless opportunities -- for those of us who play by the new rules, position ourselves right, and take personal responsibility for our future. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Your organization will keep reshaping itself, shifting and flexing to fit our rapidly changing world. That's the only way it can hope to survive in this fiercely competitive environment. Look for it to restructure, outsource, downsize, subcontract, and form new alliances.

You can also expect flexible ways of working. Duties will be constantly realigned, Short-lived assignments will be common. Maybe you'll work on a contract basis, or spend time on several project teams. You might even end up working for more than one "employer" at a time. You'll probably have a constantly new set of coworkers, more new bosses, even new careers.

You're not going to like some of this. Chance are, nobody will like it all. But that's neither here nor there. Question is, will you get with the program anyhow? (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

You need to know that resistance to change is almost always a dead-end street. The career opportunities come when you align immediately with new organizational needs and realities. When you're light on your feet. When you show high capacity for adjustment. Organizations want people who adapt fast -- not those who resist or psychologically "unplug." (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

Technological Restructuring - Impact on Manufacturing Sector - See Manufacturing Sector - Impact of Technological Restructuring

Technological Restructuring - Impact on Middle Management - See Middle Management - Impact or Technological Restructuring

Technological Restructuring - The End of Work

Even companies still earning healthy profits have eliminated thousands of jobs, and are wielding the axe most enthusiastically among the middle-ranking, white‑collar staff on whom they rely most for their success. With extraordinary zeal, western firms have embraced the idea that the best way to cope with a fast‑changing world is not only to slash jobs, but also to scrap any promise of long‑term, full‑time employment to surviving, employees, and then to demand more effort and risk‑taking from those same people. At the stroke of a pen, many have been turned into subcontractors or 'consultants'. Those still on the payroll are being 'empowered' to make their own decisions and told that their future depends on the success or failure of their teams, not an the company's overall health. (Economist, 17 June 1993 quoted in Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 8.)

Technological Restructuring - Myths Exploded

High technology will destroy more jobs than it creates. The new technology has fewer parts and fewer workers and produced more product. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 3.)

Technological Restructuring - Is Destroying Work

The problems of plant showdowns and technological change in production industries is fairly well known, but we lack reliable information concerning the fate of displaced workers, and our social knowledge of the effects of technological change and corporate restructuring is virtually nonexistent. Until recently, most economists, business analysts, and sociologists assumed that the long-term decline of manufacturing employment was not a serious social issue because of the concomitant expansion of such industries as financial services, insurance, and retail and wholesale trades. The guiding assumption here was that the expansion of jobs in these industries would absorb those who lost their production jobs. For forty years after World War II, this assumption proved more or less valid for large numbers of younger workers. Now, however, contemporary trends in major financial corporations point to mass layoffs among middle managers as well as clerical employees: consolidation of computer services may cause skilled operators and programmers to seek jobs in other sectors; a glut of college graduates has saturated the job market, changing the criteria for employment in sectors that traditionally did not hire the educated; recent M.B.A.'s are being hired to replace senior managers and reduce payroll costs; and there has been a dramatic increase in part‑time and contract employees replacing permanent staff. These changes have become apparent since the "crash of'87." Wall Street layoffs have become a daily occurrence, spreading to banks and other financial institutions. These layoffs are a result of three factors: corporate mergers that result in reorganization and allow for downsizing, that is, the elimination of workers who duplicate services; the rapid spread of technological innovations such as telecommunication systems; and more advanced computer networks that eliminate workers even as productivity rises. In banking, the combination of these changes has already led to layoffs among some of the country's leading banks, including Chase Manhattan, Bank of America, and Chemical Bank-Manufacturers Hanover Trust.

Prevailing economic wisdom explained the puzzlement of what became known as the "jobless recovery" in two ways: by ascribing the job cuts to the industrial restructuring necessary to make the economy more "efficient" in a highly competitive global market and the more pessimistic view that real growth, including jobs, could not occur in a debt‑ridden economy.

The optimists argued that global restructuring has forced U.S. industries to become meaner and leaner. America's weakened competitive position had to be improved through efficiencies such as technological change that reduced the size of the factory labor force; mergers and acquisitions that eliminated redundancy, which resulted in plant closings and consequent elimination of "excess" workforces; and applying a hatchet to "overhead" costs such as clerical workers and middle management. The large tent under which these changes were made is the term productivity. Everything, including jobs, had to be sacrificed to make the worker more productive. Included in these measures were company demands for wage concessions, substantial cuts in health and pension benefits, and conversion of many permanent jobs to temporary and part‑time work. Many experts argue that "leaner and meaner" production is the right medicine for the U.S. economy. For example, many of the largest industrial corporations were converting to "flexible specialization," better known as "just‑in‑time" production methods. Instead of building huge inventories, a growing number of industrial companies were producing only enough to meet orders. This method yields savings in warehousing, truck fleets, and the labor needed to operate them. While advocates acknowledged that this innovation might result in smaller workforces, they contend that joblessness today might be the necessary prelude to full employment tomorrow.

The second explanation, more sobering, emphasized the role of huge federal and consumer debt accumulated between the late 1970s and the early 1990s that has drained public and private investment, inhibiting recovery and growth. According to this view, economic growth, including more jobs, may not be possible unless investors are encouraged to pour money into productive activity instead of into high‑interest‑bearing paper such as Treasury bills, municipal bonds, and instruments used by government to pay the huge debt service to banks and other large institutional investors. Following this analysis, President Bill Clinton proposed an economic plan to reduce government spending and raise taxes rather than create new jobs, except for some work repairing bridges and roads. According to many fiscal and economic analysts, any sustained economic growth requires reinstituting austerity, initiated first by the Carter administration in the late 1970s but disrupted by Ronald Reagan's subsequent massive military buildup, which expanded the credit system to the breaking point even as his administration tried, in the name of austerity, to cut entitlements to the bone. In this view, the party is over and Americans will have to learn to tighten their belts further. They can expect little from the federal government and may be required to give back some of the already enfeebled welfare‑state benefits. Where Reagan and George Bush failed, Clinton can succeed because only a Democrat can persuade the working class to sacrifice its historical memory. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 2-4.)

The paradox is that even when business investors pour substantial portions of their capital into machinery and buildings, these investments do not significantly increase the number of new, permanent, full-time jobs. Computerized machines employ very little direct labor; most of it is devoted to setup, repair, and monitoring. The actual production process is almost laborless because control over it is now built into the machines by computer processes such as numerical controls, lasers, and robotics. In short, comptuter-based technology inherently eliminates labor. The more investment in contemporary technologies, the more labor is destroyed. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 6.)

In this book we argue that the progressive destruction of high quality, well‑paid, permanent jobs is produced by three closely related developments.

First, in response to pervasive, long‑term economic stagnation and to new scientifically based technologies, we are experiencing massive restructuring of patterns of ownership and investment in the global economy. Fewer companies dominate larger portions of the world market in many sectors, and national boundaries are becoming progressively less relevant to how business is done, investment deployed, and labor employed. As the North American Free Trade Agreement illustrates, there is no reason other than political considerations to value the concept of the nation with respect to the production and distribution of goods and services. As much as machinery, organization at the level of the corporate boardrooms and the workplace is a crucial technology of labor destruction.

Second, the relentless application of technology has destroyed jobs and, at the same time, reduced workers' living standards by enabling transnational corporations to deterritorialize production. Today, plant and office locations are less dependent on geographic proximity to markets, except in the case of some services. Informatics, of which computer‑mediated processes are the most common in financial, retail, and wholesale services, permit production and services to be dispersed throughout the globe with impunity. Increasingly, electronically transmitted information is the medium of business, and for the most part it does not depend on place.

Third, National Public Radio recently reported that a number of U.S. corporations were locating their design and development activities in India, where, they claimed, systems analysts, programmers, and engineers were highly competent and much lower paid than their Western (American) counterparts. Similarly, Du Pont is preparing to build a major synthetics fiber and petrochemical facility in Shanghai. In the past, U.S. scientific and technical experts were largely responsible for designing and supervising foreign plant construction, but Du Pont is employing Chinese engineers, chemists, and technicians, many of whom were trained in the United States and other advanced industrial countries and others who were not. These cases illustrate a second theme of this book: informatics not only displaces and recomposes manual labor but also displaces technical and scientific labor‑a new and expanding frontier of global restructuring. As we shall see, because these are most of the new "quality" jobs about which economists and political leaders speak, we argue that there is absolutely no prospect, except for a fairly small minority of professional and technical people, to obtain good jobs in the future.

Consequently, whatever validity it had in the past, the neoclassical economic philosophy and the policies it engenders, according to which economic growth leads to relatively full employment and higher living standards, are rendered obsolete by recent developments. If the economy respects no national boundaries, the impact of nationally based fiscal, monetary, and industrial policies are severely limited, just as labor and welfare policies that are not truly international in scope and application are fated to be eroded. Forget the old social‑democratic slogan of full employment in a humane welfare state. Abolish the welfare bureaucracy and decommodify work by separating work from income. Even with considerable political will, national governments by themselves can do next to nothing to overcome the new conditions of life and labor. The old slogan "international labor solidarity" is now a practical political proposal to achieve redistributive justice. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 8-9.)

The era of “jobs, jobs, jobs” and all that this slogan implies is over. Wev suggest that if justice depends on employment and the good life depends on the rewards of hard work, there can be no justice, and the good life may be relegated to a dim memory. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 10.)


Technological Restructuring - Job Insecurity

“Unemployment and inflation are low, corporate profits are strong, and the stock market is booming. But workers are increasingly anxious, families are finding it hard to get by, and confidence in the future is shaken.”

Time

More and more of the population will be caught up in the defining activity of the age: scrambling. Scrambling for footing on a shifting corporate landscape – cynics will call it a freelance economy – where market forces have supplanted older, more comfortable employment arrangements. Scrambling to upgrade their software, their learning, their financial reserves. Scrambling even to carve out moments of tranquillity under a banner blazoned FIGHT STRESS, a banner flapping like a Tibetan prayer flag in the gales of change. (Walter Kiechel III, “How Will We Work in the Year 2000,” Fortune, 17 May 1993, 39.)


Travel Industry - Impact of Commission Caps and Fees

Sabre International Network last month sent a ripple of concern through the budding travel technology industry when it announced a new $3 fee on reservations made through any online booking system other than its own. ... The fee made Sabre the second travel industry vendor to raise the cost of online bookings to travel agencies -- and indirectly to corporate customers -- in just two months. In July, Northwest Airlines cut the commission it pays on automated bookings to 5 percent, less than half the standard commission; in many cases, that commission shortfall is being passed on directly from travel agencies to corporate customers' bottom line.

... Sabre's competitors in the online market sniffed that the fee is a blatant attempt to slow the pace of online bookings until Sabre's Business Travel Solutions is ready for general release, and to minimize the competition from non-CRS players -- who will have to cut into their expected profits by swallowing the fee whole or price themselves out ofthe market by passing the charge on to customers. ... "This is a shot across the bow to third-party developers and those who use them," said another technology vendor. (Cheryl Rosen, "Online Fee for All? Agents Angle to Avoid Charge as Sabre Seconds Northwest's Motion," Business Travel News, 7 October 1996, 1.)

The commission cuts were feasible, in part, because agents no longer direct sales. You [the corporate travel manager] do. (Michael Whitesage, "Commission Caps' Silver Lining," Business Travel News Online, 8 April 1998.)


“[TV banking services] is the Holy Grail for Intuit because we’ll be able to offer our services over the TV as well as the Internet,” said Scott Cook, Intuit chairman. “The computer is great, but it just doesn’t reach enough households.” (Stephanie H. Davis, “Remote Control Bill Paying,” Telephony, 30 March 1998.)

Unworkability, Principles of

The ordinarily unnoticed laws that determine the persistence of hunger on this planet are precisely the laws that keep the world from working. And the principles of the end of hunger and starvation in the world are the very principles necessary to make the world work. (Hunger Project, The End of Starvation. San Francisco: Hunger Project, 1982, 4.)

The test of whether we are dealing with fundamental laws and principles, or with mere reasons and explanations, is whether there is a shift from controversy, frustration and gesturing, to mastery, motion, and completion. (Hunger Project, The End of Starvation. San Francisco: Hunger Project, 1982, 5.)

Unemployment Trends

Since the recession began in July 1990, more than 1.6 million jobs have been lost. (Greenwald, 1991, 35.)

Unemployment - Europe

Unemployment [in Europe], already 10%, is rising as new restructurings and layoffs come on top of earlier ones made in anticipation of the single market. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)


Unemployment - Social Disaster

Mass unemployment is an unmitigated social disaster. It leads to loss of output of goods and services; it slows down the rate of new investment and economic growth; it inflicts enormous damage on social morale as well as on the numerous individuals affected; it inflicts social costs which cannot be measured as well as those which can be measured and contribute so greatly to the huge public sector deficits of so many countries; finally, it generates moods of rejection, apathy, despair and irrational aggressiveness, which are a fertile soil for authoritarianism, crime, ethnic conflicts and the erosion of democratic institutions. (Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 14-5.)

The prevention of persistent mass unemployment is ... not just a matter of increasing the output from the economic system. It is a question of the survival of civilised society. (Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 15.)





Unions

After two local strikes at General Motors Corp. and another at Chrysler Corp. in the past month, UAW leaders have made it clear that there will be precious little labor peace in Detroit. ... The flashpoint issues dividing the UAW and Detroit seem tiresomely familiar: farming out parts work to nonunion suppliers, cutting union jobs, and ratcheting up overtime levels. (Bill Vlasic, "Trench Warfare in Detroit," Business Week, 5 May 1997, 139.)

Nonunion companies rarely feel the need these days to pay high wages to keep unions out. Harvard economist Richard Freeman reckons that the weakening of the labor unions accounts for one fifth of the increase in the wage gap since 1978. (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 24.)

Upper Middle Class

After wave upon wave of corporate restructurings and downsizings, even seemingly well-situated families don't feel secure. Consider the Gilsons of Minneapolis. John Gilson, 58, an electrical engineer, has been laid off from jobs three times in a decade. His 57-year-old wife, Laura, a computer programmer, recently list part of her retirement nest egg in the collapse of Executive Life Insurance Co. The couple still pull down a hefty $80,000 a year, but they feel like they're on the edge. Admits Laura, "We're sitting around waiting to be laid off." (Marc Levinson, "Living on the Edge," Newsweek, 4 Nov. 1991, 24.-5)

Viruses

Virsues are small, almost byte-sized programs with ulterior motives. After infecting computer software they can alter its function in a variety of fashions. They can put up a message, like the stoned virus. They can cause a particular program to crash. Or, worst of all, they can erase entire sectors on a hard disk.

The electronic interlopers have earned the epithet of “virus” because of their ability to propagate. Just liek living organisms, they reproduce themselves and spread like an epidemic. They travel from computer to computer nthrough infected disks, office networks, or phone links such as computer bulletin boards. (Jeff Rockburn, “The Terrorism of Viruses may be Prevanlent but is also Prevantable,” Globe and Mail, 6 March 1990, C6.)

Winning Attitude - See Adversarialism - A Winning Attitude

Zero-Sum Game - See Social Darwinism - Zero-Sum Game




Adapt or Die

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." (Barbara Rudolph, "Forced to Make a Fresh Beginning," Time, February 16, 1987, 48.)

"'Companies are managing their workers as they manage their inventories of unsold goods,' said Leslie McNulty, research director of the United Food and Commercial Workers Union. 'They are trying to keep both sets of inventories -- employees and merchandise -- as low as possible.'" (Uchitelle, 1990, 4.)

Sam Pierson, president of AGA-PGT Inc. wanted to expand capacity without adding employees. But he realized that, with conventional hydraulic injection molding, he could not reach his goal of a ‘lights-out’ [i.e., workerless] molding plant. ... But the firm achieved near lights-out conditions at its Vernon, Conn., molding plant by using new computer numerically controlled servo-driven electric injection presses, plus impressive automated material and parts-handling systems. (Plastic News, Sept. 1997.)


The logic of the capitalist system , if you're in management, is to share as little with the workers so you can share as much as you can with the stockholders. But if you don't share the gains, there's not enough income being distributed and purchasing power being created to empty the inventories. That's what happened in the '20s, that's what's happening now. (Jeremy Rivkin in Gillian Shaw, "Shorter Work Week Urged for B.C.," Vancouver Sun, Oct. 17, 1996, A15.)

When you clobber your labor force, guess what happens, you just clobbered your economy. (Joachim Knauf, economist with Human Resources Development Canada in Gillian Shaw, "Shorter Work Week Urged for B.C.," Vancouver Sun, Oct. 17, 1996, A15.)

Business leaders are realizing that downsizing is taking away their customer base and the pension-fund investment dollars that prop their corporate stock. (Gillian Shaw, "Shorter Work Week Urged for B.C.," Vancouver Sun, Oct. 17, 1996, A15.)

The irony of the situation as far as profit-oriented companies are concerned is that those whom it has judged a non-productive factor -- i.e., excess labor -- are also consumers. This unproductive factor being now having been cut off from paying work, it has little or no money to consume and so consumption falls and profits fall with it. Companies that would not consider the inhumanity of mass layoffs stop to consider the impact when profits are affected.

During this time, a very few academics and businessmen actually sounded the alarm. Newspapers carried stories of their warnings about job losses. Here is an example:

Information technology is essential to sharpening the North American response to international competition, but executives are more worried than ever about job losses, [senior lecturer John] Rockart [of the Sloan School of Management at MIT] said during a visit to Vancouver to talk about information technology.

"This competition is forcing us to do things with fewer people and that is an issue which should concern management," Rockart said.

"I have talked recently with six very senior executives who all shared the same worry about jobs."

"They are concerned that information technology, forced along by the pace of international competition, will take jobs out of the workplace. They are concerned about unemployment."

An example of job shrinkage through uses of computers is the accounts-payable department of the Ford Motor Co. in the U.S. Employee numbers dropped from 500 to 10 after Ford studied what Mazda was doing in this area. ...

Rockart said the information flows available to corporations have allowed them to strip layers of management, thrust more decisison-making on front-line troops, slash inventory costs, improve service and product quality and help democratize the workplace. "Information technology costs jobs. 'Competition forcing us to do things with fewer people," Province, Sept. 30, 1993.

“With this ever-shrinking social safety net, we seem to be ditching people all over the place,” [Wendy Lill] says. “Of course, it’s the disabled and people on thge margins who get hurt.” (Brian Bergman, “Enter Stage Left,” Maclean’s, 16 Feb. 1998, 61.)

In Canada, where the concept [of ethics officers] was almost unheard of until recently, more than 120 ethics specialists now offer their services as in-house moral arbitrators, mediators, watchdogs and listening posts for fearful whistleblowers. (Douglas Todd, “Business Responds to Ethics Explosion,” Vancouver Sun, 27 Apr. 1998, A1.)

In Canada, about 60 per cent of Canada’s top 300 corporations have ethics codes, with roughly 20 per cent employing ethics specialists. (Douglas Todd, “Business Responds to Ethics Explosion,” Vancouver Sun, 27 Apr. 1998, A7.)ß

Canadians have strongly embraced telephone and electronic banking and this country's banks all offer some variation on the service. ... In Canada, TD -- the country's fifth largest bank -- already boasts 1.1 million telephone customers, 170,000 using the TD Access PC system and 130,000 using the green line discount brokerage. ("Royal Buys U.S. Branchless Bank," Vancouver Sun, 10 March 1998, D5.)

1983

If Canadian industries do not advance their use of technology they will be left behind. (Saint-Pierre, 1983, 31.)

Competitive Advantage

"Comparative trade advantage increasingly means doing things smarter and using sophisticated technology. This is not a secure advantage. Expertise and technology cannot be contained within national boundaries and they rapidly evolve to render yesterday's advantages obsolete. To keep a step ahead of their competitors, industrialists must pay continuous attention to improving their technology management. For companies where managers understand this, technology will provide the key to an effective competitive advantage." (Canadian Manufacturers' Association in Saint-Pierre, 1983, 31.)

Technology

I regard technology as a very important means to improve our industrial competitiveness -- provided it is managed well. The fact is that we really have no alternative. Technology is easily available to all our competitors whether they are in the industrialized or the newly industrializing world. If Canada is to grow then I believe its goods and its services must be internationally competitive. (Saint-Pierre, 1983, 33.)

The industrial countries cannot rely on their natural resources to secure comparative advantages in world markets. Their competitiveness has come to depend on their technological innovativeness, management skills, speed of reaction and willingness to forge links abroad to seek new forms of co-operation. Competitiveness has thus come to depend crucially on human skills -- the success of such resource poor countries as Japan and Switzerland is proof of this. (European Management Forum in Saint-Pierre, 1983, 32.)

1984

Mill manager Gary Marshall figures an old-fashioned mill would need 500 employees to produce as much as he does with 350. ... [Les] Reed [former head of the Canadian Forestry Service] adds that MacBlo's Port Alberni mill may be a case of 350 more jobs rather than 150 fewer ones. “If the forest industry hadn't undertaken this kind of thing, we wouldn't be in business today,” he says. (Stoffman, 1984, 40.)

I think we have every reason to look forward to the future with the expectation that there will be a net increase in jobs. It always happens with technological revolutions. But we must be realistic. There will be job dislocation unavoidably and an urgent need for retraining and relocation. This is what can frighten others. ...

I believe management has a paramount responsibility to demonstrate sensitivity to these legitimate concerns about job loss, retraining and relocation. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

The challenge for Canada is not only to find ways of riding the current wave of technological innovation but, given that the rate of change is accelerating, we must also find ways of remaining on the leading [edge].... Labour, management and government must work together to achieve this result. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

1985

Automation Boosters

For domestic manufacturers, the lag in adopting numerically controlled (NC) machine tools and robots, in comparison with Canada's major trading partners, translates into higher per unit costs, lower productivity, poorer quality, and slower market response. ("Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

Robots

A robot [is] a "reprogrammable, multi-functional manipulator designed to move objects through variable programmed motions for the performance of a variety of tasks." (Ministry of Industry, Trade and Technology, "Flexible Automation Equipment" report cited in "Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

For domestic manufacturers, the lag in adopting numerically controlled (NC) machine tools and robots, in comparison with Canada's major trading partners, translates into higher per unit costs, lower productivity, poorer quality, and slower market response. ("Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

1987

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)

The De-valuation of workers

Greater uncertainty in the long-term market prospects for many products is now commonplace. Volatility in the labour market unfortunately will be the norm. Job security at all levels will be an increasingly fragile concept. Employees in all sectors of the industry, including those on the leading edge, are uncertain of their prospects even two to three years down the road. For some industries, layoffs and recalls have become a common strategy in meeting the vagaries of market demand for their products. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

Changing technology has had a dramatic effect on the kinds of jobs people do. The introduction of new technologies has considerably reduced employment levels. Most companies reported that market developments and the resultant industry reactions, such as layoffs, acquisitions and mergers, reduced employment levels much more dramatically than the adoption of new technologies. In this respect, technology has tended to be evolutionary rather than revolutionary in its application and its impact on employment. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

Why technology is desirable

The mutually reinforcing drive towards improvements in productivity and product quality are forcing manufacturers to adopt the new technologies throughout the organization. The result is better quality with fewer workers. Even where sales and market growth are buoyant, the productivity imperative means that employment is likely to grow slowly at best. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

The need to adopt new technologies has been driven mainly by the needs to improve speed, product quality, and productivity, in order to improve the industry's ability to remain competitive, both domestically and internationally. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, viii.)

There has been an evolution in generations of technology from electromechanical technologies to electronics. This evolution has created the need for different occupational and skill requirements. For example, the new production technologies are changing the traditional demarcations between designers and tool makers as well as performing some of the machine set-up tasks. This has led to a perception among many workers that machines have led to 'down-skilling' of some of their traditional 'hands-on' work and replaced it with work which is more of a monitoring and controlling function. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, ix-x.)

There may be a need for fewer unskilled, semi-skilled and administrative workers since these are the ones most exposed to displacement caused by the introduction of new technologies. There will be a greater need for technical, design, engineering, sales and marketing employees in order for companies to respond quickly to changing market opportunities. There will also be a need for skilled service and maintenance personnel to diagnose and solve problems as they occur. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

Some companies who have older work forces have said that older workers have greater difficulty adjusting to change due to their seniority, tradition, and education level and may question whether it is really worth learning new techniques at their age. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

Flat corporation

Companies are giving increasing attention to new ways of motivating workers given that many of the traditional avenues such as advancement in the [now flattened] corporate hierarchy will be less readily available. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xi.)

For the individual, traditional values about the way people are educated, gain and maintain employment, and choose a community to live in will require fundamental examination. Clearly, long-term secure employment with a company is no longer taken for granted. Individuals will need to become increasingly entrepreneurial in their career outlook and personal orientation. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xv.)

1989

Jobs are plentiful

[Human Resources minister Claude Richmond:] Everyone who is capable of working should be able to find a job. [In spite of the fact that the official unemployment rates was 9.2 per cent in B.C.] (Jean Swanson, "If Welfare 'helps,' why doesn't it help the poor?" Vancouver Sun, 18 Nov. 1989, B5.)

Business ethics

“The traditional focus [in business] is on profitability," said [Tessa] Marks, [a senior certified accountant at Peat Marwick Thorne and] a United Church member. "A lot of people have been in the situation where the right ethical decision is not necessarily the most profitable." (Douglas Todd, "The Business of Ethics," Vancouver Sun, 27 Dec. 1989, D4.)

Training

To get by in the age of computers you need computer training. (Cameron Smith, "The Need to Know," Vancouver Sun, 27 Dec. 1989, D1.)

"Organizations are going to face major changes in society in the 1990s and ... their only choice is to 'adapt or die.'" (Daniel, 1989, 75.)

In today's competitive business world, it's vital that organizations not only use new technology in the production of their product, but ensure that their employees are provided with the skills they need to perform to the maximum of their ability. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

"Businesses now need people to be skilled in order to move with the time," said Business and industry Service Centre vice-president Kris Gataveckas in 1989. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

[The] need is for increased productivity on the factory floor ... has led to the widespread use of robotics and other automation techniques. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

One of the major demands driving the market for technology-intensive products today is the insatiable need for information -- in the office, on the factory floor, and out in the field. And this information must be in a form that is flexible enough to be easily manipulated. Gone are the days of waiting for data to come back in printed form. Gone also are the days of sending a telegram and waiting several days for an answer. Now everyone wants the information at their fingertips and they want it with a minimum of pain. They want user-friendly machines they can operate with software-driven menus that are simple and easy to understand. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

The successful 21st century corporation will recognize technology as an enabler, a tool with which they can move forward. (Jan Duffy, Partner, Peat Marwick Stevenson & Kellogg, "The Fully Connected Workplace," Inside Guide, Winter 1989, 99.)

The interconnected, interactive world sounds so good. With proper tools people at all levels will do more interesting, responsible work, eliminating the mundane. With effective communication tools layers can be cut with no ill effects. People will work smarter, not harder.

Reality is not so pretty. After years of increased computerization, work hours in organizations have gone up., not down. Stress related illness is increasing. Managers complain they have to do administrative work, such as typing letters, making copies, scheduling travel. They wonder why they have become high-priced secretaries? Meanwhile, secretaries wonder where the interesting work has gone. They only see more people to support and more fragmented work as a result.

Why the gap between the promise and the reality? Because we have multiple, contradictory expectations for what computers can do. We turn to computers to ease the workload. We think computers will free up time, we think we can reduce staff. So we invest in computers, increase the workload, and cut staff.

We have triple-counted the benefits available from the investment but we can't have it all. When we try to, we end up with fewer people trying to do more work. The result is burnout, increased errors, and decreased effectiveness of people and the organization. Everyone feels that computers have not delivered the promised results. ...

Managers must examine critically the potential effects of the tools being brought into our organizations. We achieve overall effectiveness by setting clear, consistent and attainable goals for the tools. Without management's active guidance, inappropriate expectations and disappointment are inevitable. (Mary Baetz, Director, Western Management Consultants, "Get the Most from Your Computers," Inside Guide, Winter 1989, 100.)

Much has been written in the past about the effects of information technology on organizational structure and characteristics. Generally, the premise has been that information technology serves the organization and must be adapted to the particular structure but with an architecture sufficiently flexible to accommodate organizational changes.

One emerging perspective suggests that organizations must now be adapted to the information systems if, indeed, we are to extract the full potential of the technology. (C.D. Sadleir, Vice President, Computing & Communications, University of Toronto, "New Decade - Old Problems," Inside Guide, Winter 1989, 95.)

Do we have to build facilities to check errors after they have occurred, or do we automate to produce higher quality? (G.F. Sekely, Vice President, Computers & Communications, C.P. Rail, "No More Band-Aid Solutions," Inside Guide, Winter 1989, 95.)

Over the past 30 years, we have witnessed an increase of over one million times in computer performance and a cost improvement of a comparable amount. The biggest contributor to this dramatic change has been the microprocessor. It surfaced with the Apple and is now pervasive -- sometimes quite visible like the 120 million desktop computers around the world, and sometimes quite invisible like those that control the 10 million automobiles that are shipped in North American each year. (F.T. White, Ventures West Management Inc., "Microprocessors are Everywhere," Inside Guide, Winter 1989, 99.)

"Businesses now need people to be skilled in order to move with the time," said Business and industry Service Centre vice-president Kris Gataveckas in 1989. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

[Human Resources minister Claude Richmond:] Everyone who is capable of working should be able to find a job. [In spite of the fact that the official unemployment rates was 9.2 per cent in B.C.] (Jean Swanson, "If Welfare 'helps,' why doesn't it help the poor?" Vancouver Sun, 18 Nov. 1989, B5.)

"View change as an opportunity -- not a threat. ... Welcome new ideas which can improve the way you do things. Seek opportunities to innovate. ... If unexpected successes are not exploited, ... new competitors will step-in [sic] and grasp the opportunity. Within five years the new competitor may likely control your market which will have shifted to them." (Blanchard, 1989, 9.)

"We are in the midst of the largest wave of innovation since the 1890s. Anyone who does not swim with the tide is apt to be overwhelmed by it." (Blanchard, 1989, 9.)

... Strive to keep up with changes in technology. If you don't you might find your current area of expertise obsolete in a relatively short time." (Blanchard, 1989, 9.)

Computer technology has altered the nature of manufacturing. Companies can now produce in small lots and respond quickly to customers. To achieve flexible production, companies must re-organize. They must dismantle rigid hierarchies and unravel unwieldy bureaucracies.

Computer networks bring various functions together; employees must work as a team. New work patterns such as this have enabled companies to cut layers of management, Large manufacturers can run their organizations with half the number of managers they required in the 1970s. ...

In the 1990s, the visionary company will use improved technology to increase productivity and will renovate its business culture to become nimble. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

If Canada is to succeed in the global trading environment of the 1990s, we must take urgent action to exploit the enabling effect of computers and telecommunications. Canada must stop living off its illusory short-term prosperity; around the world, national economic development strategies are increasingly being based on information technology. Tomorrow's key success factors will make it mandatory for corporations, even nations, to survive and evolve through the application of information technology. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

ITAC has recently released a study on what it called "The Enabling Effect," advancing the hypothesis that both the intensity of this multiplying and leveraging effect and its scope increase over time. The publication identifies the link between strategic vision and the full harnessing of information technology. The report identifies three world-wide trends:

- the speed of innovation in information technology - the intensification of world competition, and - the emergence of time as a competitive tool.

... Canada remains well below its potential in world competition. ... Our use of information technology is focused on the most basic levels of cost reduction and quality enhancement; we are missing the chance to use it for strategic and visionary effect.

The single greatest challenge for the 1990s is to develop Canada's capacity to produce tradeable goods and services necessary to generate the wealth to enhance our standard of living. It is imperative that we enable ourselves with tools, such as information technology, to meet this challenge. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

"If it works, it's obsolete." (Gellman, 1989, 93.)

"Drucker says that today's managers must learn to innovate or they won't be around by the year 2000." (Blanchard, 1989, 9.)

"In the 1990s, newly introduced goods and services won't give you a sustained competitive advantage for many months. Not only will you have to innovate continually; you will also have to renovate. Your organization's culture will have to change and become more nimble. Only nimble companies will survive and flourish in the next decade." (Gellman, 1989, 93.)

1990

Many managers now believe that time is becoming an important basis for competitive advantage. Retailers, manufacturers, insurers and bankers have been able to cut product development cycles and delivery schedules by 90 per cent or more." (Gellman, "Quick Response is the New Competitive Edge," 1990, 25.)

Change or Die

"Wal-Mart ... collects accurate data on its network of 1400 stores just 90 minutes after the close of a business day. So Wal-Mart can make decisions more than 10 times faster than Sears. Honda Motor Co. Ltd. of Japan can assemble a new car in one-fifth the time it takes Chrysler Corp., Ford Motor Co., or General Motors Corp. In textiles, Milliken of Spartansburg, South Carolina, now takes less than a day to create a new customized product. This used to take months." (Gellman, "Quick Response," 1990, 25.)

"'Companies are managing their workers as they manage their inventories of unsold goods,' said Leslie McNulty, research director of the United Food and Commercial Workers Union. 'They are trying to keep both sets of inventories -- employees and merchandise -- as low as possible.'" (Uchitelle, 1990, 4.)

1991

It is ultimately through standards that the benefits of Open Systems -- portability, interoperability, scalability, and availability -- will be achieved. Portability refers to the ability of a piece of software to be easily transferred from one computing environment to another without expensive modification. Interoperability is the ability of products from one vendor to communicate easily with those of other vendors, whether on the same machine or across networks. Scalability enables customers to run their applications on the size of computing platform that fits their needs -- from a small personal computer to a large mainframe -- and move up or down in the range without worrying about changes. Availability means that a product can be purchased from a wide variety of sources so that monopoly practices and pricing do not become a problem. (Leo Gotleib, Partner, Gellman, Hayward & Partners, "Open Systems: Promises and Threats," Inside Guide, Oct./Nov. 1991, 96.)

"Social Darwinism is respectable again." (Olive, 1991, 15.)

"Only yesterday, employees were held to be the most valued assets of a corporation. Then the recession began to do its work. Today the job market is awash with curricula vitae, and people don't seem so valuable any more. Where are they now, the workers who were invited to conceive and embrace a company vision? Many are gone, swept up in the dehumanizing process of 'body-count reductions.'" (Olive, 1991, 15)

"[A recent full-page ad in The Wall Street Journal ... reads: 'He who hesitates is lunch.'" (Olive, 1991, 15.)

"Stop finding yourself, pal: It's time to get back to work -- if you still have a job, that is." (Olive, 1991, 15.)

[IBM] is looking to cut 14,000 names from the payroll. And this after Aker's pay and bonus has soared 185% in 1990, to more than $2.2 million. (Olive, 1991, 16.)

Thinking seriously about the important role of the individual in the corporation, as we began to do in the late 1980s, was a useful and overdue exercise. But after that short-lived burst of introspection, coming hard on the heels of the materialistic excesses of the past decade, business leaders appear to be driven again. Driven to fight off the demons of recession, inefficiency and global competition and to swing the pendulum back to career-obssessed workaholism. Business is hell, so let's get on with it. (Olive, 1991, 156.)

Computer a Labour-Saving Device

"What is a computer for, if not to save labor?" (Steinhart, Jim. "Database Octopus," Canadian Datasystems, May 1991, 58.)

"The gold fields of B.C. made poor men rich and rich men enemies." (cover of Report on Business Magazine for Nov. 1991.)

"Getting tough with Japan." (Buchanan and Macli, 1991, 80.)

"There seems to be nothing the Japanese cannot invent, cannot make more quickly and efficiently than the West." (Buchanan and Macli, 1991, 83.)

"It is clear that Japan is an enemy that is not playing the game and that there is an absolute desire to conquer the world." (Edith Cresson in Buchanan and Macli, 1991, 83.)

"I've always thought that Japan-bashing was really a political cover for the internal weakness of the basher." (PM Brian Mulroney in Buchanan and Macli, 1991, 83.)

"Complaints that they live too frugally and work too hard are typically viewed by the Japanese as little more than the cries of affluent, ill-disciplined and even incompetent children." (Buchanan and Macli, 1991, 88.)

Death of Corporate Loyalty

The Organization Man was a loyal, hard-working, white male who had given himself entirely over to his company. He avoided risk, wasn't terribly creative, and was quicker to take orders than to question authority. (John A. Byrne, "Is the Company Man Really a Goner?" Business Week, 26 Aug. 1991, 12.)

Canadian Dream Becomes a Nightmare

The Canadian dream could become a nightmare of more plant closings, more permanent job losses and more communities deprived of tax revenues to educate their children, renew their infrastructure and maintain a desired quality of life." (Ford Motor Company of Canada CEO Kenneth] Harrigan in Cecil Foster. 1991. "GM Canada Mirrors Auto Woes," Financial Post, December 16, 7.)

"In the 90s, let's do lunch may have a slightly different meaning." (BC Tel ad on KVOS TV, Nov. 8, 1991.)

1992

Canadian Politicians

While Canadians suffered through the worst recession since the Dirty '30s, lost their jobs and businesses and struggled to keep their heads above water, the country's leaders, in their superior wisdom, pursued their magnificent obsession. (Joan Bryden, "Fixation Created Two New Solitudes: Them vs. Us," Sun, Oct. 27, 1992.)

"Theoretically every time you make a $10,000 investment on technology you should have replaced one employee." (James Miller, CEO of Royal Trustco in Macleans, Nov. 23, 1992, 44.)

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Executives such as the Royal Bank's [Vice-President James] Gannon express profound concern for the future of the country's graduates. “I hope students do not become disillusioned and give up or drop out, said Gannon. “Well-educated graduates are the key to our future. For the thousands who find themselves lost in the difficult transition from school to career, that sentiment may be cold comfort in hard times. (Patricia Chisholm, “The Graduates: Out of School, Out of Work,” Macleans, 22 June 1992.)

1993

Houses Make More than People

Houses make more money every year than their occupants. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Unemployment Has Climbed Steadily

[Unemployment rose from 4.2 in the 1950s, to 5.1 in the 1960s, 6.7 in the 1970s, and 9.3 in the 1980s.] (Macleans, Aug. 2, 1993, 30.)

[In 1993 the Conference Board of Canada forecasted it to 11.3 for 1993, 11.0 for 1994, and 10.5 for 1995.] (Province, 21 Oct. 1993, A51.)

Ever since the 1950s, policy-makers in Canada and other Western industrial countries have assumed that there is a trade-off between inflation and unemployment. But [Pierre Fortin, professor of economics at University of Quebec in Montreal] says that, over time, it is taking higher and higher doses of unemployment to bring the inflation rate down. He calls it a “ratchet effect “ and notes that Canada’s average unemployment rate in each decade has climbed steadily since the end of the war. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

The structural shifts in the Canadian economy have already eroded many of the white-collar, middle management jobs to which university graduates have traditionally aspired. People aged 15 to 24 are curremt;y facing unemployment rates of more than 20 per cent, well above the national average of 10.8 per cent. And that trend has caused growing concern among economists becaus3e it foreshadows weak consumer demand as well as an eroding tax base to maintain social programs. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

Battered by the recession and the competitive pressures of free trade and rapid technological change, most Canadian businesses are reluctant to rehire employees - even as their balance sheets improve. As the pace of economic activity picks up, many companies are still opting to pay overtime charges to existing, permanent workers or to contract for the services of part-time workers who do not require employee benefit packages and who can more easily be terminated. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

Overall, the number of full-time jobs in Canada, 10.2 million, has remained relatively constant since 1987, while part-time jobs have grown by 400,000 to 2.2 million. In 1975, part-time workers accounted for 9.9 per cent of the workfroce. They now accopunt for 17.7 percent. In fact, eve3n for those who have followed common wisdom and specuialized in high technology areas, there are not enough full-time opportunities to meet the demand. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

American economist Peter Drucker believes that things will never be the same again in the corporate sector. In his recent book, Post-Capitalist Society, Drucker predicts the decline of permanent jobs in many sectors and the rise of contract work. “The big business, the government agency, the large hospital, the large university will not necessarily be the one that employs a great many people.”

Other experts say that the workforce will be increasingly divided into three key segments: senior managers, highgly skilled contract workers, and temporary clerical staff. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

The shift to a service-dominated economy has been underway since the end of the Second World War. At that time, half of all employed Canadians worked for goods-produing companies. Now, three out of four provide services. But until the late 1980s, growth in service sector employment merely outsripped the growth in manufacturing. Since then, employment in manufacturing has actually been shrinking. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

More than 300,000 workes in the manufacturing sector ... have lost their jobs over the past five years. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 32.)

[Douglas Coupland called McJobs the] low-pay, low-prestige, low-dignity, low-benefit, no-future jobs in the service sector. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 32.)

Even highly-educated and high-ranking professionals say that it is now difficult for them to find secure jobs. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

Despite widespread layoffs over the past three years, psychologists and other experts note that5 most employees, initially at least, still have difficulty coping with the loss of their jobs. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

Ottawa has already announced that its deficit for the first four months of its fiscal year [1993] was off track by $2.9 billion because of sagging tax revenues. (Province, 1993. Date unknown.)

Governments have little room to increase spending or reduce taxes. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

Government are Our Allies

At the Tokyo economic summit in June [1993], the G-7 leaders issued a ringing declaration that saud: “We are particularly concerned about the level of unemployment. More than 23 million people are unemployed in our countries; that is unacceptable.” (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

The Ford Motor Company has eliminated distribution centres in its resupply of car plants in Canada and the U.S.

In B.C. a centralized purchasing agency serving ... hospitals and long-term care centres has a pilot project under way in which selected suppliers submit tenders electronically. ...

"The plan is to convert to a fully electronic system in which purchase orders are issued through a computer, drawing on the pricing information in the database. Eventually, payment may be electronically authorized. [said Chris d'Silva, director of material services with B.C. health Services Ltd.] ....

"There is more technology being used today in the U.S. marketplace in such areas as ordering and inventory control," said [Canterbury Coffee Corp.] president John Wynn. ("Electronic Ordering Used Widely," Vancouver Province, 14 Oct. 1993.)

Elevator manufacturer Otis Inc. ... went from localized service operations to a 24-hour single command centre. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.)

Information technology is revolutionizing business, but there's growing concern about workers paying the price with their jobs.

That's the view expressed by John Rockart, a senior lecturer with the Sloan school of management at Massachusetts Institute of Technology.

Information technology is essential to sharpening the North American response to international competition, but executives are more worried than ever about job losses, Rockart said during a visit to Vancouver to talk about information technology.

"This competition is forcing us to do things with fewer people and that is an issue which should concern management," Rockart said.

"I have talked recently with six very senior executives who all shared the same worry about jobs.

"They are concerned that information technology, forced along by the pace of international competition, will take jobs out of the workplace. They are concerned about unemployment."

An example of job shrinkage through uses of computers is the accounts-payable department of the Ford Motor Co., in the U.S. Employee numbers dropped from 500 to 10 after Ford studied what Mazda was doing in this area. ...

Rockart said the information flows available to corporations have allowed them to strip out layers of management, thrust more decision-making on to front-line troops, slash inventory costs, improve service and product quality and help democratize the workplace. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.)

Attitude towards Downsizing

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. Does this indicate a desparately ill economy? Not at all. In fact, a major factor in the layoffs is an economic restructuring that is already pushing up productivity levels and enabling Canada to compete in selling its products around the world. It's a painful process, especially for those who lose their jobs. But the result will be industries that are equal to or better than their counterparts anywhere in the world. One of the side effects of the layoffs has been a boom in entrepreneurship, as former employees of large and medium-sized companies become proprietors of their own small businesses, in turn helping to make Canada more efficient. ("Trade Warriors." (Canadian Business, June 1993, 23.)

"Triple bar decks jobs. Code data cuts cost for retailer," Province, Oct. 14, 1993.

Whatever happens to the overall unemployment rate, economists predict that the gap between the rates for educated and uneducated workers will get even wider. (John Daly, "Will They Find Work in the '90s?" Maclean's, Aug. 2, 1993, 34.)

New Brunswick Premier Frank McKenna calls it Guaranteed Annual Employment – the name of a program that has a structure, an ambitious goal but not yet a life. Under McKenna’s plan, no person requiring social services in the prov9ince would ever again have to wend their way through the often-bewildering array of federal and provincial assistance programs. Instead, explained McKenna in an interview with Maclean’s, “the unemployed could start with two certainties: all their government needs would be centred in one place, and there would be jobs for everyone able to work.” ... By lumping together federal UI, provincial welfare and other jointb income assistance and job creation programs – if Ottawa agrees to relinquish its jurisidiction in these matters – New Brunswick would then have the money to offer jobs or career training to any interested and capable resident who is without work. Many of these jobs would be seasonal, physical and overseen directly by the provincial government. But the overall goal, says the premier, would be to “allow the unemployed to either upgrade their skills in their own field, to study other fields or to simply give them interim jobs that would allow them to keep their dignity.” (Anthony Wilson-Smith, “Changing the Rules,” Maclean’s, 2 Aug. 1993, 36-7.)

1994

1995

It's human nature not to deal with corporate death until your own looms. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10.)

Operators, technicians and clerks will be heavily hit, the [Bell Canada] executive said. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10. Bell Canada lays off 10,000.)

1996

Training and Retraining

The employees who are going to grow and advance in the 21st century are those who are taking an active role in broadening their skills today. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

"We have been in quite a down trend in personal consumption patterns," said Vancouver economist George Pedersson. "So if the job growth rate slows down and the labor force growth rate keeps going up, unemployment will continue to rise -- possibly to around 11 per cent." (Bruce Constantineau, "B.C. Job growth Slows as Labor Force Rises," Vancouver Sun, 9 Nov. 1996, B1.)

The employees who are going to grow and advance in the 21st century are those who are taking an active role in broadening their skills today. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

Companies ... practice 'whipsaw bargaining' -- threatening to move factories to lower wage areas unless workers make concessions. In the U.S., the multinational giant Xerox used this form of blackmail in the first year of NAFTA to bargain down the wages of employees -- even though it posted a $794 million profit! ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Social safety net shrinking

As the Chairperson of the Canadian Manufacturers' Association told Ottawa at the time: "If a policy is anti-competitive, dump it."

And that 'dumping' is precisely what's happened. Social programs have been gutted. Family allowance was eliminated. Public pensions have been cut back and are no longer universal. Welfare has been slashed. Health care and post-secondary education are being robbed of federal dollars. The result? The gradual ratcheting down of our social standards and programs. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all-out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Inroads of Automation

“It’s robotics and computers. Nobody’s talking about man-made things any more. It’s all done by machine,” says [Michael rosa, a self-employed businessman in Montreal]. (Eric Beauchesne, “Canadians Seem Resigned to Fewer Jobs, Poll Finds,” Vancouver Sun, 5 July 1996, A9.)

Free Trade and Downsizing


Full-Time, Part-Time, Self-Employed, etc.

Statistics Canada ... said all the employment gains last month were in the private sector and two-thirds of the jobs involved people who became self-employed. (Bruce Constanineau, “B.C. Job Growth Slows as Labor Force Rises,” Vancouver Sun, 9 Nov. 1996, B5.)

"It’s remarkable how many people are already working at two jobs to make ends meet." [said Bill Robson, senior economist with the C.D. Howe Institute] "Work Wee Cut Called 'Unrealistic,'" Hamilton Spectator, 11 April 1996, C10.)

There used to be an expectation, [Angus Reid official Darrell Bricker]says, that when the economy improved jobs would be created.

“People are coming to terms with the fact that you can have a jobless recovery. This si something that’s really a recent phenomenon.” (Eric Beauchesne, “Canadians Seem Resigned to Fewer Jobs, Poll Finds,” Vancouver Sun, 5 July 1996, A9.)

Downsizing

This is an era of downsizing.... Employees in virtually any company should operate as if downsizing is around the corner. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

Free Trade has Brought Unemployment

Since [free trade was brought into Canada in] 1988 almost all the companies belonging to the Business Council on National Issues (BCNI), the corporate lobby group pushing for free trade, actually laid off workers -- more than 200,000 in total. Meanwhile, they increased their revenues by $32.1 billion. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Exports are up, largely due to a low dollar, but the so-called 'boom' hasn't resulted in many jobs. Why?

It's because the big growth in exports has been in machinery and equipment, highly automated industries that employ few workers. In other sectors, free trade has meant plant closures and major job losses. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

1997

There were at least 188,500 more Canadians declaring themselves self-employed last month than there were in January, 1996. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A6.)

Unemployment Figures for Canada

The unemployment rate now stands at about 9.3 per cent, roughly four percentage points above the figure reported for the United States. At a little over five per cent, the U.S. is generally agreed to be as close to full employment as a North American economy is likely to get. (Andrew Coyne, “Canadian Focus on Unemployment Rate a ‘Natural Obsession,’” Ottawa Citizen, 8 April 1997, A12.)

Tax load is an important factor for both business and individuals in deciding where to work and invest. In a globalizing economy, high tax rates mean lost opportunities, as footloose business relocate their work to lower-tax jurisdictions. ...

Tax burden and levels of unemployment are related. Around the world, national tax burdens are progressively being shifted away from mobile afctors of production such as business and skilled workers, and onto consumption, property and less mobile workers. Canada's high tax burden is thus contributing to our inexcusable unemployment rate, especially among those at the bottom of the wage scale. ("Canadian taxes, a growing concern,' Globe & Mail, 9 Sept. 1997.)

Jobless Recoveries

“Sam Pierson, president of AGA-PGT Inc. wanted to expand capacity without adding employees. But he realized that, with conventional hydraulic injection molding, he could not reach his goal of a ‘lights-out’ [i.e., workerless] molding plant. ... But the firm achieved near lights-out conditions at its Vernon, Conn., molding plant by using new computer numerically controlled servo-driven electric injection presses, plus impressive automated material and parts-handling systems.” (Plastic News, Sept. 1997.)

Unemployment Rate for U.S.

[The United States has] a 4.9-per-cent jobless rate. (Peter Hadekel, “U.S.’s Pro-Growth Policies Pay Off,” Montreal gazette, 21 May 1997, C1.)

Unemployment has now hovered above 9 per cent for 76 consecutive months, the worst stretch since the depression of the 1930s. ... [John] Lester [senior economist at CIBC Wood Gundy Securities Inc. in Toronto] said the pause in the expansion of the job market means there won't be enough growth in disposable incomes to keep consumers in a spending mood. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A1.)

Unions are struggling to find a way to recruit the next generation of workers, and to make the legacy of union struggles relevant for those trapped in low-wage "McJobs."

... Of the youngest workers, aged 15 to 24, only 11 per cent-- just 190,000 in all -- currently belong to unions, according to a Stats Can report released this week. In comparison, 44 per cent of workers aged 45 to 54 -- more than one million strong -- are unionized, mots of those in traditional blue collar or public sector jobs. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C1.)

According to Statistics Canada:

  • Almost 50 per cent of 15-to-24 year olds with jobs are working part-time, compared to 20 per cent just seven years ago. Among working non-students, 20 per cent held part-time jobs in 1996, compared to just six per cent in 1976.
  • About 500,000 jobs for young people disappeared between 1989 and 1996, creating a youth unemployment rate of over 16 per cent. Counting those who've quit looking for work, the actual unemployment rate is estimated at more than 25 per cent.
  • Real earnings for young men aged 17 to 24, adjusting or inflation, dropped by almost 20 per cent between 1979 and 1992. In comparison, real incomes for those over 45 rose by more ghan six per cent.

Numbers like these, in theory, should be producing plenty of angry and disillusioned young people eager to sign a union card and fight for higher wages anbd steadier work. But it hasn't worked out that way. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C4.)

1998

Youth Unemployment

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. (“60,000 Students to Get $120 million for Summer Jobs,” Vancouver Sun, 20 Feb. 1998, A13.)

Rising Consumer Debt

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising question about whether the shopping spree from consumer can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

The number of men working full-time throughout the year declined by 4% between 1990 and 1995, while the number of women dropped by 1%. In contrast, there was an increase of 28% for men and 16% for women among those working part-time for the full year. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

In contrast, the number of people who reported that they worked part-time throughout the year increased nearly 20% to 1.2 million. This is almost double the number (680,000) who reported working on a part-time basis throughout the year in 1980. The comparable figure in 1970 was 351,000 persons. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

About 1.8 million individuals reported that they were their own boss in 1996, up 28% during the five-year period. They accounted for nearly 13% of the labour force, compared to 10% in 1991. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all-out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Consumption Trends Downward; Consumption Financed from Debt

But [buoyant] sales since the second half of 1996 “have largely come from increased consumer debt rather than from rising incomes,” StatsCan said, raising questions about whether the shopping spree by consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

"We have been in quite a down trend in personal consumption patterns," said Vancouver economist George Pedersson. "So if the job growth rate slows down and the labor force growth rate keeps going up, unemployment will continue to rise -- possibly to around 11 per cent." (Bruce Constantineau, "B.C. Job growth Slows as Labor Force Rises," Vancouver Sun, 9 Nov. 1996, B1.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising question about whether the shopping spree from consumer can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

In 1996, there were more women working as retail sales clerks than in any other occupation. Five years earlier, the most common job for women was secretary. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 1.)

Automation is Changing the Face of Employment

Continuing a trend which has existed for more than four decades, job growth was strongest in the service-producing industries between 1991 and 1996. During this period, the labour force in the services sector grew 3.3% to 10.5 million, while declining in the goods-producing sector by 5.8% to 3.8 million. Almost three of every four workers (73%) were in services in 1996. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.

The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

In 1996, there were more women working as retail sales clerks than in any other occupation. Five years earlier, the most common hob for women was secretary. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 1.)

Unemployment Figures for B.C.

British Columbia's unemployment rate climbed to a four-year high of 9.7 per cent last month - from 9.3 in January - despite an increase of 8,600 jobs throughout the province, Statistics Canada reported Friday.

The federal agency said the rise in new jobs was offset by the fact that 18,500 more B.C. residents began to look for work in February, leading to the higher overall jobless rate. ...

Business Council of B.C. vice-president Jock Finlayson noted most job creation in B.C. now takes place in the self-employed sector. The number of self-employed workers in the province has grown by 17,000 while the number of paid workers has declined by 26,000.

"Unless something changes very quickly in B.C.'s economic outlook, the trend is for very weak employment growth," Finlayson said. (Bruce Constantineau, "Jobless Rate Hits 4-year High," Vancouver Sun, 14 March 1998, A2.)

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. ("60,000 Students to Get $120 million for Summer Jobs," Vancouver Sun, 20 Feb. 1998, A13.)

Nationally, the unemployment rate fell to 8.6 per cent from 8.9 per cent in January [1998]. (Bruce Constantineau, “Jobless Rate Hits 4-Year High,” Vancouver Sun, 14 Mar. 1998, A1.)

There were at least 188,500 more Canadians declaring themselves self-employed last month than there were in January, 1996. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A6.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising question about whether the shopping spree from consumer can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.

The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

They're young, out of school, out of work and out of the labour market -- and there are more than 200,000 of them.

Being out of sight, these 15- to 24-year-olds are also out of mind, the Canadian Imperial Bank of Commerce says in a report released Thursday. They don't show up in the official jobless numbers because they aren't registered as looking for work and as such their problems are not often the focus of government policy-makers.

These are the young people most at risk of being left behind by a job market that's increasingly demanding higher-skilled workers, says bank economist Benny Tal, author of the report. If they are, all Canadians will pay the price in both higher social and economic costs, he warned. ...

What makes these young people such a concern is that they aren't getting the education or knowledge prized in today's economy, nor are they acquiring work experience or skills that would come from a job or job training. And they're not even looking for work -- probably because many believe no jobs are available.

"The more than 200,000 youths out of school and not registered in the labour market are at particular risk," the report says. "But when these youths are added to the similar numbers of youths registered as unemployed and also out of school, the total number of young people at risk reaches 450,000 or 11 per cent of all Canadian youths."

"These youths face a harsh job environment, real entry barriers and a complex school-to-work transition.," tal said. "While the unemployment rate among on-student youth is expected to decline in 1998, then problem will persist, with a significant proportion of this group likely to remain unemployed or out of the labor market."

tal rejected the argument that has been made recently by some analysts: that youth unemployment has always been high and the problem is no more serious today than in the past.

"Young people are facing problems that their parents never faced. You really need skills and if you don't acquire them, you will be left behind."

... About one in four 15- to 24-year olds has never held a job, more than double the proportion in 1989, which was before the recession and the ensuing jobless recovery that robbed many of the opportunity to gain work experience and kept many in school.

"The consequences of this are serious," the report warns. It notes that the average spell of unemployment among youths just graduated from school is currently about 21 weeks -- eight weeks longer than the average period of unemployment in 1989.

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

In 1996, there were more women working as retail sales clerks than in any other occupation. Five years earlier, the most common hob for women was secretary. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 1.)

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

In contrast, the number of people who reported that they worked part-time throughout the year increased nearly 20% to 1.2 million. This is almost double the number (680,000) who reported working on a part-time basis throughout the year in 1980. The comparable figure in 1970 was 351,000 persons. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

The number of men working full-time throughout the year declined by 4% between 1990 and 1995, while the number of women dropped by 1%. In contrast, there was an increase of 28% for men and 16% for women among those working part-time for the full year. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

About 1.8 million individuals reported that they were their own boss in 1996, up 28% during the five-year period. They accounted for nearly 13% of the labour force, compared to 10% in 1991. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Continuing a trend which has existed for more than four decades, job growth was strongest in the service-producing industries between 1991 and 1996. During this period, the labour force in the services sector grew 3.3% to 10.5 million, while declining in the goods-producing sector by 5.8% to 3.8 million. Almost three of every four workers (73%) were in services in 1996. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

The International Monetary Fund said Thursday that high unemployment rates were a concern in Canada and urged the country to take steps to protect itself from the fallout if Asia’s financial crisis. (“Canada’s Jobless rate a Concern, IMF Says,” Vancouver Sun, 20 Feb. 1998, D7.)

Rising Productivity and Profits

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years.

“The big gain in sales is great news for government finances at both the federal and provincial level,” she said. “With [tax] revenues pouring in, most governments are set to come in with better-than-expected numbers.” ...

But sales since the second half of 1996 “have largely come from increased consumer debt rather than from rising incomes,” StatsCan said, raising questions about whether the shopping spree by consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

British Columbia's unemployment climbed to a four-year high of 9.7 per cent last month - from 9.3 in January - despite an increase of 8,600 jobs throughout the province, Statistics Canada reported Friday.

The federal agency said the rise in new jobs was offset by the fact that 18,500 more B.C. residents began to look for work in February, leading to the higher overall jobless rate. ...

"Competitors throughout the world will steadily increase their pressure on Canadian companies to produce faster, cheaper and better, whether the 'product' be goods or services." (Pankrantz, 68.)

Canadian Dictionary of Quotations on Global Automation

This Dictionary comprises research carried out in Canadian newspapers and magazines on the subject of technological restructuring and the automation of the Canadian workforce.

Index

Adapt or Die

Benefits of Technology - Saves Cost of Labour Benefits of Technology - Eliminates Human Error Benefits of Technology - Allows for Flexible Manufacturing Business ethics

Canadian Dream Centralization Capital - Flight of Capital, Mobile Capital, Agile Capital Change - Hyperspeed Comparative Trade Advantage Corporation - Impact of Flattening the Corporation Costs of Technology - Job Insecurity Costs of Technology - Stress Cost of Technology - Technology Shapes the Corporation Cost-Savings - See Benefits of Technology - Saves Cost of Labour Downsizing - See Unemployment - Downsizing Drivers of Technology - Felt Need for Increased Productivity Drivers of Technology - Felt Need for Information Drivers of Technology - Felt Need for Speed

Earnings - Houses Make More Employment Trends Employment Trends - Fate of Unskilled Workers Employment Trends - Forecasts Employment Trends - Full-Time Employment - Impacts of Automation Employment Trends - Manufacturing Shrinking Employment Trends - McJobs Employment Trends - No “Job for Life” Employment Trends - Over-Employment Employment Trends - Part-time vs Full-time Employment Trends - Self-Employed Employment Trends - Senior Workers Employment Trends - Service Sector Employment Trends - Underemployment Employment Trends - Women

Flat Corporation - See Corporation - Impact of Flattening the Corporation Flexible Manufacturing - See Benefits of Technology - Allows for Flexible Manufacturing Free Trade - Impact on Employment

History of Technology Human Error - See Benefits of Technology - Eliminates Human Error

IMF Monitoring

Job Insecurity - See Costs of Technology - Job Insecurity Jobless Recoveries - See Unemployment - Jobless Recoveries

Obsolescence

Politicians Profitability - See Business Ethics

Robots

Safety Net Safety net - Attitude of Business Social Darwinism Stress - See Costs of Technology - Stress

Technological Drivers - See Drivers of Technology Technological Restructuring Technology - Forecasts Trade War - With Japanese Training

Unemployment Rate for B.C. Unemployment Rate for Canada Unemployment Rate for Canada Unemployment Rate for U.S.A. Unemployment - Due to Downsizing Unemployment - Its Impact on Consumers Unemployment - Its Impact on Tax Revenue and Consumer Demand Unemployment - Jobless Recoveries Unemployment - “Makes us More Competitive” Unemployment - Position of World Governments Unemployment - Ratchet Effect Unemployment - Technology is Capturing Work Unemployment - Trauma Unemployment - Youth Unemployment - Youth Unemployment - Youth and Unions Unemployment - White-collar Jobs Unskilled Workers - See Employment Trends - Fate of Unskilled Workers

Workers - Devaluation

Dictionary

Adapt or Die

I regard technology as a very important means to improve our industrial competitiveness -- provided it is managed well. The fact is that we really have no alternative. Technology is easily available to all our competitors whether they are in the industrialized or the newly industrializing world. If Canada is to grow then I believe its goods and its services must be internationally competitive. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

If Canadian industries do not advance their use of technology they will be left behind. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 31.)

The challenge for Canada is not only to find ways of riding the current wave of technological innovation but, given that the rate of change is accelerating, we must also find ways of remaining on the leading [edge].... Labour, management and government must work together to achieve this result. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Mill manager Gary Marshall figures an old-fashioned mill would need 500 employees to produce as much as he does with 350. ... [Les] Reed [former head of the Canadian Forestry Service] adds that MacBlo's Port Alberni mill may be a case of 350 more jobs rather than 150 fewer ones. “If the forest industry hadn't undertaken this kind of thing, we wouldn't be in business today,” he says. (Stoffman, 1984, 40.)

For domestic manufacturers, the lag in adopting numerically controlled (NC) machine tools and robots, in comparison with Canada's major trading partners, translates into higher per unit costs, lower productivity, poorer quality, and slower market response. ("Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

"Drucker says that today's managers must learn to innovate or they won't be around by the year 2000." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.) "We are in the midst of the largest wave of innovation since the 1890s. Anyone who does not swim with the tide is apt to be overwhelmed by it."(Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.)

"View change as an opportunity -- not a threat. ... Welcome new ideas which can improve the way you do things. Seek opportunities to innovate. ... If unexpected successes are not exploited, ... new competitors will step-in [sic] and grasp the opportunity. Within five years the new competitor may likely control your market which will have shifted to them." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.)

"Organizations are going to face major changes in society in the 1990s and ... their only choice is to 'adapt or die.'" (Dianne Daniel, "Adapt or Die - Be Prepared for the 1990s, CBTA Told," Canadian Computing, 12 October 1989, 75.)

In the 1990s, newly introduced goods and services won't give you a sustained competitive advantage for many months. Not only will you have to innovate continually; you will also have to renovate. Your organization's culture will have to change and become more nimble. Only nimble companies will survive and flourish in the next decade. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

ITAC has recently released a study on what it called "The Enabling Effect," advancing the hypothesis that both the intensity of this multiplying and leveraging effect and its scope increase over time. The publication identifies the link between strategic vision and the full harnessing of information technology. The report identifies three world-wide trends:

- the speed of innovation in information technology - the intensification of world competition, and - the emergence of time as a competitive tool.

... Canada remains well below its potential in world competition. ... Our use of information technology is focused on the most basic levels of cost reduction and quality enhancement; we are missing the chance to use it for strategic and visionary effect.

The single greatest challenge for the 1990s is to develop Canada's capacity to produce tradeable goods and services necessary to generate the wealth to enhance our standard of living. It is imperative that we enable ourselves with tools, such as information technology, to meet this challenge. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

If Canada is to succeed in the global trading environment of the 1990s, we must take urgent action to exploit the enabling effect of computers and telecommunications. Canada must stop living off its illusory short-term prosperity; around the world, national economic development strategies are increasingly being based on information technology. Tomorrow's key success factors will make it mandatory for corporations, even nations, to survive and evolve through the application of information technology. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

In the age of the lean, mean organization, using technology may be the only way to succeed. ... The successful 21st century corporation will recognize technology as an enabler, a tool with which they can move forward (Jan Duffy, Partner, Peat Marwick Stevenson & Kellog, “The Fully Connected Workplace,” Inside Guide, Winter 1989, 99.)

It’s something that’s here today and if you’re not working on it in your data centre, you’re not going to survive. (Rosemary LaChance of Farber/LaChance Inc., Fear Persists as Lights Dim in the Data Centre,” Computing Canada, 4 January 1990, 1.)

"Wal-Mart ... collects accurate data on its network of 1400 stores just 90 minutes after the close of a business day. So Wal-Mart can make decisions more than 10 times faster than Sears. Honda Motor Co. Ltd. of Japan can assemble a new car in one-fifth the time it takes Chrysler Corp., Ford Motor Co., or General Motors Corp. In textiles, Milliken of Spartansburg, South Carolina, now takes less than a day to create a new customized product. This used to take months." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Quick Response is the New Competitive Edge," Inside Guide, Summer, 1990, 25.) We believe that in 1990 all of your products are going to be integrated with everything else. ... If you don’t run your data centre efficiently and effectively, your company is going to give it to someone else to run. ... You can’t do this by yourself. You have to convince your staff to work themselves out of the job they have today. (Arnold Farber of Farber/LaChance Inc., “Fear Persists as Lights Dim in the Data Centre,” Computing Canada, 4 January 1990, 5.)

Thinking seriously about the important role of the individual in the corporation, as we began to do in the late 1980s, was a useful and overdue exercise. But after that short-lived burst of introspection, coming hard on the heels of the materialistic excesses of the past decade, business leaders appear to be driven again. Driven to fight off the demons of recession, inefficiency and global competition and to swing the pendulum back to career-obssessed workaholism. Business is hell, so let's get on with it. (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 156.)

[A recent full-page ad in The Wall Street Journal ... reads:] “He who hesitates is lunch.”(David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

In the face of such changes, the best way to get back into the workforce or protect job security against further layoffs is to find out where the new jobs are likely to appear, reassess your qualifications and organize a personal skills upgrading program. (James Purdie, "Upgrading is the best route to job security," Financial Post, 16 Dec. 1991, 11.)

"Stop finding yourself, pal: It's time to get back to work -- if you still have a job, that is."(David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

The way out is to embrace change, create a flexible new industrial model, provide incentives for a continuing stream of new products and services, and redefine job categories to tap workers' repressed creative energies. (James Purdie, "Upgrading is the best route to job security," Financial Post, 16 Dec. 1991, 11.)

“It’s robotics and computers. Nobody’s talking about man-made things any more. It’s all done by machine,” says [Michael Rosa, a self-employed businessman in Montreal]. (Eric Beauchesne, “Canadians Seem Resigned to Fewer Jobs, Poll Finds,” Vancouver Sun, 5 July 1996, A9.)

Benefits of Technology - Saves Cost of Labour

Computer networks bring various functions together; employees must work as a team. New work patterns such as this have enabled companies to cut layers of management, Large manufacturers can run their organizations with half the number of managers they required in the 1970s. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

"What is a computer for, if not to save labor?" (Jim Steinhart, "Database Octopus," Canadian Datasystems, May 1991, 58.)

"Theoretically every time you make a $10,000 investment on technology you should have replaced one employee." (James Miller, CEO of Royal Trustco in Macleans, Nov. 23, 1992, 44.)

Benefits of Technology - Eliminates Human Error

Do we have to build facilities to check errors after they have occurred or do we automate to produce higher quality? (G.F. Sekely, Vice President, Computers & Communications, C.P. Rail, "No More Band-Aid Solutions," Inside Guide, Winter 1989, 95.)

The whole idea of automation is to eliminate human error. ... We have to change our mindset – we have to trust our computers. ... We’re throwing people into the middle of the process and these people are making mistakes. (Rosemary LaChance of Farber/LaChance Inc., “Fear Persists as Lights Dim in the Data Centre,” Computing Canada, 4 January 1990, 5.)

Benefits of Technology - Allows for Flexible Manufacturing

Computer technology has altered the nature of manufacturing. Companies can now produce in small lots and respond quickly to customers. To achieve flexible production, companies must re-organize. They must dismantle rigid hierarchies and unravel unwieldy bureaucracies. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

Business ethics

I believe management has a paramount responsibility to demonstrate sensitivity to ... legitimate concerns about job loss, retraining and relocation. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Profit is like oxygen -- it is crucial to our survival, but it is not the purpose of our lives. (Max Carim in Dianne Daniel, "Adapt or Die - Be Prepared for the 1990s, CBTA Told," Canadian Computing, 12 October 1989, 75.)

“The traditional focus [in business] is on profitability," said [Tessa] Marks, [a senior certified accountant at Peat Marwick Thorne and] a United Church member. "A lot of people have been in the situation where the right ethical decision is not necessarily the most profitable." (Douglas Todd, "The Business of Ethics," Vancouver Sun, 27 Dec. 1989, D4.)

Canadian Dream The Canadian dream could become a nightmare of more plant closings, more permanent job losses and more communities deprived of tax revenues to educate their children, renew their infrastructure and maintain a desired quality of life." (Ford Motor Company of Canada CEO Kenneth Harrigan in Cecil Foster, "GM Canada Mirrors Auto Woes," Financial Post, 16 Dec. 1991, 7.)

Centralization

Elevator manufacturer Otis Inc. ... went from localized service operations to a 24-hour single command centre. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.)

The Ford Motor Company has eliminated distribution centres in its resupply of car plants in Canada and the U.S.

In B.C. a centralized purchasing agency serving ... hospitals and long-term care centres has a pilot project under way in which selected suppliers submit tenders electronically. ...

"The plan is to convert to a fully electronic system in which purchase orders are issued through a computer, drawing on the pricing information in the database. Eventually, payment may be electronically authorized. [said Chris d'Silva, director of material services with B.C. Health Services Ltd.] ....

"There is more technology being used today in the U.S. marketplace in such areas as ordering and inventory control," said [Canterbury Coffee Corp.] president John Wynn. ("Electronic Ordering Used Widely," Vancouver Province, 14 Oct. 1993.)

Capital - Flight of Capital, Mobile Capital, Agile Capital

Companies ... practice 'whipsaw bargaining' -- threatening to move factories to lower wage areas unless workers make concessions. In the U.S., the multinational giant Xerox used this form of blackmail in the first year of NAFTA to bargain down the wages of employees -- even though it posted a $794 million profit! ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Tax load is an important factor for both business and individuals in deciding where to work and invest. In a globalizing economy, high tax rates mean lost opportunities, as footloose business relocate their work to lower-tax jurisdictions. ...

Tax burden and levels of unemployment are related. Around the world, national tax burdens are progressively being shifted away from mobile factors of production such as business and skilled workers, and onto consumption, property and less mobile workers. Canada's high tax burden is thus contributing to our inexcusable unemployment rate, especially among those at the bottom of the wage scale. ("Canadian taxes, a growing concern,” Globe & Mail, 9 Sept. 1997.)

Change - Hyperspeed

"If it works, it's obsolete." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

Comparative Trade Advantage

Comparative trade advantage increasingly means doing things smarter and using sophisticated technology. This is not a secure advantage. Expertise and technology cannot be contained within national boundaries and they rapidly evolve to render yesterday's advantages obsolete. To keep a step ahead of their competitors, industrialists must pay continuous attention to improving their technology management. For companies where managers understand this, technology will provide the key to an effective competitive advantage. (Canadian Manufacturers' Association in (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 31.)

The industrial countries cannot rely on their natural resources to secure comparative advantages in world markets. Their competitiveness has come to depend on their technological innovativeness, management skills, speed of reaction and willingness to forge links abroad to seek new forms of co-operation. Competitiveness has thus come to depend crucially on human skills -- the success of such resource poor countries as Japan and Switzerland is proof of this. (European Management Forum in Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 32.)

Corporation - Impact of Flattening the Corporation

Companies are giving increasing attention to new ways of motivating workers given that many of the traditional avenues such as advancement in the [now flattened] corporate hierarchy will be less readily available. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xi.)

Costs of Technology - Job Insecurity

Greater uncertainty in the long-term market prospects for many products is now commonplace. Volatility in the labour market unfortunately will be the norm. Job security at all levels will be an increasingly fragile concept. Employees in all sectors of the industry, including those on the leading edge, are uncertain of their prospects even two to three years down the road. For some industries, layoffs and recalls have become a common strategy in meeting the vagaries of market demand for their products. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.) "Not everyone has decided to treat employees as disposable commodities." (David Olive, 1991, 16.)

Costs of Technology - Stress

The interconnected, interactive world sounds so good. With proper tools people at all levels will do more interesting, responsible work, eliminating the mundane. With effective communication tools layers can be cut with no ill effects. People will work smarter, not harder.

Reality is not so pretty. After years of increased computerization, work hours in organizations have gone up, not down. Stress related illness is increasing. Managers complain they have to do administrative work, such as typing letters, making copies, scheduling travel. They wonder why they have become high-priced secretaries? Meanwhile, secretaries wonder where the interesting work has gone. They only see more people to support and more fragmented work as a result.

Why the gap between the promise and the reality? Because we have multiple, contradictory expectations for what computers can do. We turn to computers to ease the workload. We think computers will free up time, we think we can reduce staff. So we invest in computers, increase the workload, and cut staff.

We have triple-counted the benefits available from the investment but we can't have it all. When we try to, we end up with fewer people trying to do more work. The result is burnout, increased errors, and decreased effectiveness of people and the organization. Everyone feels that computers have not delivered the promised results. ...

Managers must examine critically the potential effects of the tools being brought into our organizations. We achieve overall effectiveness by setting clear, consistent and attainable goals for the tools. Without management's active guidance, inappropriate expectations and disappointment are inevitable. (Mary Baetz, Director, Western Management Consultants, "Get the Most from Your Computers," Inside Guide, Winter 1989, 100.)

Cost of Technology - Technology Shapes the Corporation

Much has been written in the past about the effects of information technology on organizational structure and characteristics. Generally, the premise has been that information technology serves the organization and must be adapted to the particular structure but with an architecture sufficiently flexible to accommodate organizational changes.

One emerging perspective suggests that organizations must now be adapted to the information systems if, indeed, we are to extract the full potential of the technology. (C.D. Sadleir, Vice President, Computing & Communications, University of Toronto, "New Decade - Old Problems," Inside Guide, Winter 1989, 95.)

Cost-Savings from Technology - See Benefits of technology - Saves Cost of Labour

Downsizing - See Unemployment - Downsizing

Drivers of Technology - Felt Need for Increased Productivity

[The] need is for increased productivity on the factory floor ... has led to the widespread use of robotics and other automation techniques. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

Drivers of Technology - Felt Need for Information

One of the major demands driving the market for technology-intensive products today is the insatiable need for information -- in the office, on the factory floor, and out in the field. And this information must be in a form that is flexible enough to be easily manipulated. Gone are the days of waiting for data to come back in printed form. Gone also are the days of sending a telegram and waiting several days for an answer. Now everyone wants the information at their fingertips and they want it with a minimum of pain. They want user-friendly machines they can operate with software-driven menus that are simple and easy to understand. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

Drivers of Technology - Felt Need for Speed

The need to adopt new technologies has been driven mainly by the needs to improve speed, product quality, and productivity, in order to improve the industry's ability to remain competitive, both domestically and internationally. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, viii.)

Many managers now believe that time is becoming an important basis for competitive advantage. Retailers, manufacturers, insurers and bankers have been able to cut product development cycles and delivery schedules by 90 per cent or more." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Quick Response is the New Competitive Edge," Inside Guide, Summer, 1990, 25-6.)

Earnings - Houses Make More

Houses make more money every year than their occupants. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Employment Trends

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.

The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Employment Trends - Fate of Unskilled Workers

There may be a need for fewer unskilled, semi-skilled and administrative workers since these are the ones most exposed to displacement caused by the introduction of new technologies. There will be a greater need for technical, design, engineering, sales and marketing employees in order for companies to respond quickly to changing market opportunities. There will also be a need for skilled service and maintenance personnel to diagnose and solve problems as they occur. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

Whatever happens to the overall unemployment rate, economists predict that the gap between the rates for educated and uneducated workers will get even wider. (John Daly, "Will They Find Work in the '90s?" Maclean's, Aug. 2, 1993, 34.)

Employment Trends - Forecasts

I think we have every reason to look forward to the future with the expectation that there will be a net increase in jobs. It always happens with technological revolutions. But we must be realistic. There will be job dislocation unavoidably and an urgent need for retraining and relocation. This is what can frighten others. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Many companies believe that the elimination of surplus employees has been accomplished to a large degree. Large increases in employment are not expected as sales rise in the future. Greater uncertainty in the long-term market prospects for many products is now commonplace. Volatility in the labour market unfortunately will be the norm. Job security at all levels will be an increasingly fragile concept. Employees in all sectors of the industry, including those on the leading edge, are uncertain of their prospects even two to three years down the road. For some industries, layoffs and recalls have become a common strategy in meeting the vagaries of market demand for their products. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

[Human Resources minister Claude Richmond:] Everyone who is capable of working should be able to find a job. [In spite of the fact that the official unemployment rates was 9.2 per cent in B.C.] (Jean Swanson, "If Welfare 'helps,' why doesn't it help the poor?" Vancouver Sun, 18 Nov. 1989, B5.)

American economist Peter Drucker believes that things will never be the same again in the corporate sector. In his recent book, Post-Capitalist Society, Drucker predicts the decline of permanent jobs in many sectors and the rise of contract work. “The big business, the government agency, the large hospital, the large university will not necessarily be the one that employs a great many people.”

Other experts say that the workforce will be increasingly divided into three key segments: senior managers, highly skilled contract workers, and temporary clerical staff. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

Employment Trends - Full-Time

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Employment - Impacts of Automation

For the individual, traditional values about the way people are educated, gain and maintain employment, and choose a community to live in will require fundamental examination. Clearly, long-term secure employment with a company is no longer taken for granted. Individuals will need to become increasingly entrepreneurial in their career outlook and personal orientation. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xv.)

Employment Trends - Manufacturing Shrinking

More than 300,000 workers in the manufacturing sector ... have lost their jobs over the past five years. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 32.)

The shift to a service-dominated economy has been underway since the end of the Second World War. At that time, half of all employed Canadians worked for goods-producing companies. Now, three out of four provide services. But until the late 1980s, growth in service sector employment merely outsripped the growth in manufacturing. Since then, employment in manufacturing has actually been shrinking. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

Employment Trends - No “Jobs for Life”

"Today, there is no such thing as a job for life. You have to cultivate a skill set and make sure it doesn't go obsolete." (Ex-Novatel engineer Beng Fai Siew, now working as engineering manager in Ontario, in John Daly, "Will They Find Work in the '90s?" Maclean's, Aug. 2, 1993, 33.)


Employment Trends - Over-Employment

"It’s remarkable how many people are already working at two jobs to make ends meet." [said Bill Robson, senior economist with the C.D. Howe Institute] "Work Wee Cut Called 'Unrealistic,'" Hamilton Spectator, 11 April 1996, C10.)

Employment Trends - Part-time vs Full-time

Overall, the number of full-time jobs in Canada, 10.2 million, has remained relatively constant since 1987, while part-time jobs have grown by 400,000 to 2.2 million. In 1975, part-time workers accounted for 9.9 per cent of the workforce. They now account for 17.7 percent. In fact, eve3n for those who have followed common wisdom and specialized in high technology areas, there are not enough full-time opportunities to meet the demand. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

Employment Trends - Self-Employed

Statistics Canada ... said all the employment gains last month were in the private sector and two-thirds of the jobs involved people who became self-employed. (Bruce Constanineau, “B.C. Job Growth Slows as Labor Force Rises,” Vancouver Sun, 9 Nov. 1996, B5.)

There were at least 188,500 more Canadians declaring themselves self-employed last month than there were in January, 1996. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A6.)

About 1.8 million individuals reported that they were their own boss in 1996, up 28% during the five-year period. They accounted for nearly 13% of the labour force, compared to 10% in 1991. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Employment Trends - Senior Workers

Some companies who have older work forces have said that older workers have greater difficulty adjusting to change due to their seniority, tradition, and education level and may question whether it is really worth learning new techniques at their age. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

"You can't simply recall the old-line managers to pick up where they left off. Their values and psychological set are rational and analytical. The tough-minded, action-oriented approach is too rigid to adapt to present-day conditions," says Tom Tavares, a Toronto-based consulting psychiatrist.

"Too much has happened to reshape management and leadership styles. What's needed is a new direction -- above all, the ability to see change coming and plan the best ways to meet it." James Purdie. 1991, "Upgrading is the best route to job security," Financial Post, Dec. 16, 11.

Employment Trends - Service Sector

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

Continuing a trend which has existed for more than four decades, job growth was strongest in the service-producing industries between 1991 and 1996. During this period, the labour force in the services sector grew 3.3% to 10.5 million, while declining in the goods-producing sector by 5.8% to 3.8 million. Almost three of every four workers (73%) were in services in 1996. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Employment Trends - Underemployment

The number of men working full-time throughout the year declined by 4% between 1990 and 1995, while the number of women dropped by 1%. In contrast, there was an increase of 28% for men and 16% for women among those working part-time for the full year. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

In contrast, the number of people who reported that they worked part-time throughout the year increased nearly 20% to 1.2 million. This is almost double the number (680,000) who reported working on a part-time basis throughout the year in 1980. The comparable figure in 1970 was 351,000 persons. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

Employment Trends - Women

In 1996, there were more women working as retail sales clerks than in any other occupation. Five years earlier, the most common job for women was secretary. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 1.)

Flat Corporation - See Corporation - Impact of Flattening the Corporation

Free Trade - Impact on Employment

Since [free trade was brought into Canada in] 1988 almost all the companies belonging to the Business Council on National Issues (BCNI), the corporate lobby group pushing for free trade, actually laid off workers -- more than 200,000 in total. Meanwhile, they increased their revenues by $32.1 billion. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

History of Technology

It’s been little more than 10 years since personal computers first knocked on the doors of business in search of jobs. Now, it would be hard to think of an occupation – from architecture to zoology – that hasn’t been changed by allowing the machines in. (Jeff Rockburn, “Observers predict the next revolution will be in software,” Toronto Globe & Mail, 6 March 1990, C1.)

The microprocessor ... surfaced with the Apple and is now pervasive – sometimes quite visible like the 130 million desktop computers around the world, and sometimes quite invisible like those that control the 10 million automobiles that are shipped in North America each year.

Microprocessors are now more than 100 times more cost-effective than mainframe computers and the gap is widening, while conventional large scale mainframe technology is slowly creeping forward from today’s performance levels. (F.T. White, Ventures West Management, Inc., “Microprocessors are Everywhere,” Inside Guide, Winter 1989, 99.)

Over the past 30 years, we have witnessed an increase of over one million times in computer performance and a cost improvement of a comparable amount. The biggest contributor to this dramatic change has been the microprocessor. It surfaced with the Apple and is now pervasive -- sometimes quite visible like the 120 million desktop computers around the world, and sometimes quite invisible like those that control the 10 million automobiles that are shipped in North American each year. (F.T. White, Ventures West Management Inc., "Microprocessors are Everywhere," Inside Guide, Winter 1989, 99.)

There has been an evolution in generations of technology from electromechanical technologies to electronics. This evolution has created the need for different occupational and skill requirements. For example, the new production technologies are changing the traditional demarcations between designers and tool makers as well as performing some of the machine set-up tasks. This has led to a perception among many workers that machines have led to 'down-skilling' of some of their traditional 'hands-on' work and replaced it with work which is more of a monitoring and controlling function. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, ix-x.)

Human Error - See Benefits of Technology - Eliminates Human Error

IMF Monitoring

The International Monetary Fund said Thursday that high unemployment rates were a concern in Canada and urged the country to take steps to protect itself from the fallout if Asia’s financial crisis. (“Canada’s Jobless rate a Concern, IMF Says,” Vancouver Sun, 20 Feb. 1998, D7.)

Job Insecurity - See Costs of Technology - Job Insecurity

Jobless Recoveries - See Unemployment - Jobless Recoveries

Obsolescence Most of the jobs lost are lost forever. (James Purdie, "Upgrading is the best route to job security," Financial Post, Dec. 16, 1991, 11.)

Recent surveys show that technical knowledge tends to be outdated in three years, compared with seven years only ten years ago. James Purdie. 1991, "Upgrading is the best route to job security," Financial Post, Dec. 16, 11.

Strive to keep up with changes in technology. If you don't you might find your current area of expertise obsolete in a relatively short time." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.) Politicians

While Canadians suffered through the worst recession since the Dirty '30s, lost their jobs and businesses and struggled to keep their heads above water, the country's leaders, in their superior wisdom, pursued their magnificent obsession. (Joan Bryden, "Fixation Created Two New Solitudes: Them vs. Us," Sun, Oct. 27, 1992. The politicians had their attention fixed on constitutional reform when people were worried about the state of the economy. They were revealed as being out-of-touch.)

Profitability - See Business Ethics

Robots

A robot [is] a "reprogrammable, multi-functional manipulator designed to move objects through variable programmed motions for the performance of a variety of tasks." (Ministry of Industry, Trade and Technology, "Flexible Automation Equipment" report cited in "Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

Safety Net

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all-out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Safety net - Attitude of Business

As the Chairperson of the Canadian Manufacturers' Association told Ottawa at the time: "If a policy is anti-competitive, dump it."

And that 'dumping' is precisely what's happened. Social programs have been gutted. Family allowance was eliminated. Public pensions have been cut back and are no longer universal. Welfare has been slashed. Health care and post-secondary education are being robbed of federal dollars. The result? The gradual ratcheting down of our social standards and programs. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all-out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Social Darwinism

"Social Darwinism is respectable again." (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

"In the 90s, let's do lunch may have a slightly different meaning." (BC Tel ad on KVOS TV, Nov. 8, 1991.)

"[Seek] a sustained competitive advantage." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

Trade Warriors. (Canadian Business, June 1993, 22.)

Stress - See Costs of Technology - Stress

Technological Drivers - See Drivers of Technology

Technological Restructuring

The cost-cutting electronic revolution is one reason why economic recovery in the U.S. has yielded 3.5 million fewer jobs than past recoveries. Employers are investing in systems, not workers. (Mark Wilson, "Triple bar [code] decks jobs: code data cuts cost for retailer" Province, Oct. 14, 1993.

Technology - Forecasts

The world of technology, and information technology in particular, will continue to experience rapid change and the persistent convergence of computing and telecommunications. These phenomena will continue to present major opportunities for increased productivity and competitive advantage for those with the courage to be proactive. (C.D. Sadleir, Vice President, Computing & Communications, University of Toronto, “New Decade – Old Problems,” Inside Guide, Winter 1989, 95.)

Trade War - With Japanese

"Getting tough with Japan." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 80.)

"There seems to be nothing the Japanese cannot invent, cannot make more quickly and efficiently than the West." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 83.)

"It is clear that Japan is an enemy that is not playing the game and that there is an absolute desire to conquer the world." (Edith Cresson in Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 83.)

"I've always thought that Japan-bashing was really a political cover for the internal weakness of the basher." (PM Brian Mulroney in Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991,, 83.)

"Complaints that they live too frugally and work too hard are typically viewed by the Japanese as little more than the cries of affluent, ill-disciplined and even incompetent children." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 88.)

Training

To get by in the age of computers you need computer training. (Cameron Smith, "The Need to Know," Vancouver Sun, 27 Dec. 1989, D1.)

In today's competitive business world, it's vital that organizations not only use new technology in the production of their product, but ensure that their employees are provided with the skills they need to perform to the maximum of their ability. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

"Businesses now need people to be skilled in order to move with the time," said Business and industry Service Centre vice-president Kris Gataveckas in 1989. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

New Brunswick Premier Frank McKenna calls it Guaranteed Annual Employment – the name of a program that has a structure, an ambitious goal but not yet a life. Under McKenna’s plan, no person requiring social services in the prov9ince would ever again have to wend their way through the often-bewildering array of federal and provincial assistance programs. Instead, explained McKenna in an interview with Maclean’s, “the unemployed could start with two certainties: all their government needs would be centred in one place, and there would be jobs for everyone able to work.” ... By lumping together federal UI, provincial welfare and other jointb income assistance and job creation programs – if Ottawa agrees to relinquish its jurisdiction in these matters – New Brunswick would then have the money to offer jobs or career training to any interested and capable resident who is without work. Many of these jobs would be seasonal, physical and overseen directly by the provincial government. But the overall goal, says the premier, would be to “allow the unemployed to either upgrade their skills in their own field, to study other fields or to simply give them interim jobs that would allow them to keep their dignity.” (Anthony Wilson-Smith, “Changing the Rules,” Maclean’s, 2 Aug. 1993, 36-7.)

The employees who are going to grow and advance in the 21st century are those who are taking an active role in broadening their skills today. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

"I'm into job retention," says Karen Hayward of Xerox Canada. "In just the past 24 hours, I went on a three-hour training session on my own time, read Computing Canada for 40 minutes before bed and attended a one-hour breakfast seminar." (Report on Business Magazine, April 1993, 46.)

Unemployment Rate for B.C.

British Columbia's unemployment rate climbed to a four-year high of 9.7 per cent last month - from 9.3 in January - despite an increase of 8,600 jobs throughout the province, Statistics Canada reported Friday.

The federal agency said the rise in new jobs was offset by the fact that 18,500 more B.C. residents began to look for work in February, leading to the higher overall jobless rate. ...

Business Council of B.C. vice-president Jock Finlayson noted most job creation in B.C. now takes place in the self-employed sector. The number of self-employed workers in the province has grown by 17,000 while the number of paid workers has declined by 26,000.

"Unless something changes very quickly in B.C.'s economic outlook, the trend is for very weak employment growth," Finlayson said. (Bruce Constantineau, "Jobless Rate Hits 4-year High," Vancouver Sun, 14 March 1998, A2.)

Unemployment Rate for Canada

[Unemployment rose from 4.2 in the 1950s, to 5.1 in the 1960s, 6.7 in the 1970s, and 9.3 in the 1980s.] (Figures derived from chart in Macleans, Aug. 2, 1993, 30.)

[In 1993 the Conference Board of Canada forecasted it to 11.3 for 1993, 11.0 for 1994, and 10.5 for 1995.] (Province, 21 Oct. 1993, A51.)

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. ("Trade Warriors," Canadian Business, June 1993, 23.)

Unemployment has now hovered above 9 per cent for 76 consecutive months, the worst stretch since the depression of the 1930s. ... [John] Lester [senior economist at CIBC Wood Gundy Securities Inc. in Toronto] said the pause in the expansion of the job market means there won't be enough growth in disposable incomes to keep consumers in a spending mood. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A1.)

The unemployment rate now stands at about 9.3 per cent, roughly four percentage points above the figure reported for the United States. At a little over five per cent, the U.S. is generally agreed to be as close to full employment as a North American economy is likely to get. (Andrew Coyne, “Canadian Focus on Unemployment Rate a ‘Natural Obsession,’” Ottawa Citizen, 8 April 1997, A12.)

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. ("60,000 Students to Get $120 million for Summer Jobs," Vancouver Sun, 20 Feb. 1998, A13.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising question about whether the shopping spree from consumer can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Nationally, the unemployment rate fell to 8.6 per cent from 8.9 per cent in January [1998]. (Bruce Constantineau, “Jobless Rate Hits 4-Year High,” Vancouver Sun, 14 Mar. 1998, A1.)

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.

The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

Unemployment - Unemployment Rate for U.S.A.

[The United States has] a 4.9-per-cent jobless rate. (Peter Hadekel, “U.S.’s Pro-Growth Policies Pay Off,” Montreal gazette, 21 May 1997, C1.)

Unemployment - Due to Technological Restructuring

Changing technology has had a dramatic effect on the kinds of jobs people do. The introduction of new technologies has considerably reduced employment levels. Most companies reported that market developments and the resultant industry reactions, such as layoffs, acquisitions and mergers, reduced employment levels much more dramatically than the adoption of new technologies. In this respect, technology has tended to be evolutionary rather than revolutionary in its application and its impact on employment. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

The mutually reinforcing drive towards improvements in productivity and product quality are forcing manufacturers to adopt the new technologies throughout the organization. The result is better quality with fewer workers. Even where sales and market growth are buoyant, the productivity imperative means that employment is likely to grow slowly at best. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

[IBM] is looking to cut 14,000 names from the payroll. And this after Aker's pay and bonus has soared 185% in 1990, to more than $2.2 million. (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 16.)

Operators, technicians and clerks will be heavily hit, the [Bell Canada] executive said. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10. Bell Canada lays off 10,000.)

This is an era of downsizing.... Employees in virtually any company should operate as if downsizing is around the corner. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)


Unemployment - Its Impact on Tax Revenues and Consumer Demand

The structural shifts in the Canadian economy have already eroded many of the white-collar, middle management jobs to which university graduates have traditionally aspired. People aged 15 to 24 are currently facing unemployment rates of more than 20 per cent, well above the national average of 10.8 per cent. And that trend has caused growing concern among economists because it foreshadows weak consumer demand as well as an eroding tax base to maintain social programs. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

Governments have little room to increase spending or reduce taxes. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

Ottawa has already announced that its deficit for the first four months of its fiscal year [1993] was off track by $2.9 billion because of sagging tax revenues. (Province, 1993. Fragment.)

"We have been in quite a down trend in personal consumption patterns," said Vancouver economist George Pedersson. "So if the job growth rate slows down and the labor force growth rate keeps going up, unemployment will continue to rise -- possibly to around 11 per cent." (Bruce Constantineau, "B.C. Job Growth Slows as Labor Force Rises," Vancouver Sun, 9 Nov. 1996, B1.)

Tax burden and levels of unemployment are related. Around the world, national tax burdens are progressively being shifted away from mobile afctors of production such as business and skilled workers, and onto consumption, property and less mobile workers. Canada's high tax burden is thus contributing to our inexcusable unemployment rate, especially among those at the bottom of the wage scale. ("Canadian taxes, a growing concern,' Globe & Mail, 9 Sept. 1997.)

But [buoyant] sales since the second half of 1996 “have largely come from increased consumer debt rather than from rising incomes,” StatsCan said, raising questions about whether the shopping spree by consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising questions about whether the shopping spree from consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Unemployment - Jobless Recoveries

Nine months after the recession is supposed to have ended, stagnant sales and wrenching structural change are forcing companies across the country to downsize, freeze wages, lay off workers or go bankrupt. (Greg Ip, "Recovery on Hold," Financial Post, December 16, 1991,1.)

Battered by the recession and the competitive pressures of free trade and rapid technological change, most Canadian businesses are reluctant to rehire employees - even as their balance sheets improve. As the pace of economic activity picks up, many companies are still opting to pay overtime charges to existing, permanent workers or to contract for the services of part-time workers who do not require employee benefit packages and who can more easily be terminated. (Scot Blythe, “Generation Xed,” Maclean’s, 2 Aug. 1993, 35.)

There used to be an expectation, [Angus Reid official Darrell Bricker] says, that when the economy improved jobs would be created.

“People are coming to terms with the fact that you can have a jobless recovery. This is something that’s really a recent phenomenon.” (Eric Beauchesne, “Canadians Seem Resigned to Fewer Jobs, Poll Finds,” Vancouver Sun, 5 July 1996, A9.)

Exports are up, largely due to a low dollar, but the so-called 'boom' hasn't resulted in many jobs. Why?

It's because the big growth in exports has been in machinery and equipment, highly automated industries that employ few workers. In other sectors, free trade has meant plant closures and major job losses. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Unemployment - “Makes us More Competitive”

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. Does this indicate a desparately ill economy? Not at all. In fact, a major factor in the layoffs is an economic restructuring that is already pushing up productivity levels and enabling Canada to compete in selling its products around the world. It's a painful process, especially for those who lose their jobs. But the result will be industries that are equal to or better than their counterparts anywhere in the world. One of the side effects of the layoffs has been a boom in entrepreneurship, as former employees of large and medium-sized companies become proprietors of their own small businesses, in turn helping to make Canada more efficient. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Unemployment - Position of World Governments

At the Tokyo economic summit in June [1993], the G-7 leaders issued a ringing declaration that said: “We are particularly concerned about the level of unemployment. More than 23 million people are unemployed in our countries; that is unacceptable.” (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

Unemployment - Ratchet Effect

Ever since the 1950s, policy-makers in Canada and other Western industrial countries have assumed that there is a trade-off between inflation and unemployment. But [Pierre Fortin, professor of economics at University of Quebec in Montreal] says that, over time, it is taking higher and higher doses of unemployment to bring the inflation rate down. He calls it a “ratchet effect “ and notes that Canada’s average unemployment rate in each decade has climbed steadily since the end of the war. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 34.)

Unemployment - Technology is Capturing Work

Information technology is revolutionizing business, but there's growing concern about workers paying the price with their jobs.

That's the view expressed by John Rockart, a senior lecturer with the Sloan school of management at Massachusetts Institute of Technology.

Information technology is essential to sharpening the North American response to international competition, but executives are more worried than ever about job losses, Rockart said during a visit to Vancouver to talk about information technology.

"This competition is forcing us to do things with fewer people and that is an issue which should concern management," Rockart said.

"I have talked recently with six very senior executives who all shared the same worry about jobs.

"They are concerned that information technology, forced along by the pace of international competition, will take jobs out of the workplace. They are concerned about unemployment."

An example of job shrinkage through uses of computers is the accounts-payable department of the Ford Motor Co., in the U.S. Employee numbers dropped from 500 to 10 after Ford studied what Mazda was doing in this area. ...

Rockart said the information flows available to corporations have allowed them to strip out layers of management, thrust more decision-making on to front-line troops, slash inventory costs, improve service and product quality and help democratize the workplace. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.) Triple bar decks jobs. Code data cuts cost for retailer. (Mark Wilson, "Triple bar [code] decks jobs: code data cuts cost for retailer" Province, Oct. 14, 1993.)

Unemployment - Trauma

Despite widespread layoffs over the past three years, psychologists and other experts note that most employees, initially at least, still have difficulty coping with the loss of their jobs. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

It's human nature not to deal with corporate death until your own looms. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10.)

Unemployment - Youth

Executives such as the Royal Bank's [Vice-President James] Gannon express profound concern for the future of the country's graduates. “I hope students do not become disillusioned and give up or drop out, said Gannon. “Well-educated graduates are the key to our future. For the thousands who find themselves lost in the difficult transition from school to career, that sentiment may be cold comfort in hard times. (Patricia Chisholm, “The Graduates: Out of School, Out of Work,” Macleans, 22 June 1992.)

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. (“60,000 Students to Get $120 million for Summer Jobs,” Vancouver Sun, 20 Feb. 1998, A13.)

They're young, out of school, out of work and out of the labour market -- and there are more than 200,000 of them.

Being out of sight, these 15- to 24-year-olds are also out of mind, the Canadian Imperial Bank of Commerce says in a report released Thursday. They don't show up in the official jobless numbers because they aren't registered as looking for work and as such their problems are not often the focus of government policy-makers.

These are the young people most at risk of being left behind by a job market that's increasingly demanding higher-skilled workers, says bank economist Benny Tal, author of the report. If they are, all Canadians will pay the price in both higher social and economic costs, he warned. ...

What makes these young people such a concern is that they aren't getting the education or knowledge prized in today's economy, nor are they acquiring work experience or skills that would come from a job or job training. And they're not even looking for work -- probably because many believe no jobs are available.

"The more than 200,000 youths out of school and not registered in the labour market are at particular risk," the report says. "But when these youths are added to the similar numbers of youths registered as unemployed and also out of school, the total number of young people at risk reaches 450,000 or 11 per cent of all Canadian youths."

"These youths face a harsh job environment, real entry barriers and a complex school-to-work transition.," Tal said. "While the unemployment rate among on-student youth is expected to decline in 1998, then problem will persist, with a significant proportion of this group likely to remain unemployed or out of the labor market."

Tal rejected the argument that has been made recently by some analysts: that youth unemployment has always been high and the problem is no more serious today than in the past.

"Young people are facing problems that their parents never faced. You really need skills and if you don't acquire them, you will be left behind."

... About one in four 15- to 24-year olds has never held a job, more than double the proportion in 1989, which was before the recession and the ensuing jobless recovery that robbed many of the opportunity to gain work experience and kept many in school.

"The consequences of this are serious," the report warns. It notes that the average spell of unemployment among youths just graduated from school is currently about 21 weeks -- eight weeks longer than the average period of unemployment in 1989.

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

Unemployment - Youth and Unions

Unions are struggling to find a way to recruit the next generation of workers, and to make the legacy of union struggles relevant for those trapped in low-wage "McJobs."

... Of the youngest workers, aged 15 to 24, only 11 per cent-- just 190,000 in all -- currently belong to unions, according to a Stats Can report released this week. In comparison, 44 per cent of workers aged 45 to 54 -- more than one million strong -- are unionized, mots of those in traditional blue collar or public sector jobs. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C1.)

According to Statistics Canada:

  • Almost 50 per cent of 15-to-24 year olds with jobs are working part-time, compared to 20 per cent just seven years ago. Among working non-students, 20 per cent held part-time jobs in 1996, compared to just six per cent in 1976.
  • About 500,000 jobs for young people disappeared between 1989 and 1996, creating a youth unemployment rate of over 16 per cent. Counting those who've quit looking for work, the actual unemployment rate is estimated at more than 25 per cent.
  • Real earnings for young men aged 17 to 24, adjusting or inflation, dropped by almost 20 per cent between 1979 and 1992. In comparison, real incomes for those over 45 rose by more ghan six per cent.

Numbers like these, in theory, should be producing plenty of angry and disillusioned young people eager to sign a union card and fight for higher wages and steadier work. But it hasn't worked out that way. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C4.)

Unemployment - White-collar Jobs

Even highly-educated and high-ranking professionals say that it is now difficult for them to find secure jobs. (John Daly, “Will They Find Work in the 90s?” Maclean’s, 2 Aug. 1993, 33.)

Unskilled Workers - See Employment Trends - Fate of Unskilled Workers

Workers - Devaluation

"Only yesterday, employees were held to be the most valued assets of a corporation. Then the recession began to do its work. Today the job market is awash with curricula vitae, and people don't seem so valuable any more. Where are they now, the workers who were invited to conceive and embrace a company vision? Many are gone, swept up in the dehumanizing process of 'body-count reductions.'" (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15)


Technology - Boosters

Ah, yes, The Bard might well have been enamored with computers had he been alive today. (Richard Angell, "Graphics and Memory: To CAD or not to CAD?" Printed Circuit Design, April 1987, 8.)

Technology - Paradoxes

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. (David Kahn, "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 1991, 5.)

Technology Transfers

The U.S. is selling its technology to overseas companies -- ... once the company is sold, the technology emigrates, leaving the U.S. dependent on other countries for vital technology. ("Turning it Around," Electronic Engineering Times, October 14, 1991, S75.)

Time to Market

Rapidly shifting consumer tastes and increased global competition necessitate short product design cycles and responsive manufacturing facilities; economies of scope replace economies of scale. (Warner, 1987, 55.)

Technological Restructuring

Forced upon business by unprecedented global competition and financial turbulence, the change is so swift and powerful that it is churning across the business landscape with the force of an army of bulldozers. American companies have started the huge task of rebuilding themselves from the ground up, erecting a sleep new operating architecture to replace the unwieldy processes of the past. ... Their aim: to produce streamlined, combative concerns that can withstand the frenetic, competitive pace of the late '80s. (Russell, 1987, 46.)

Technological Restructuring - Global Integration

Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated. Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities. (Farrell, 1991, 73.)

Time to Market

'Unless American firms improve their ability to reach out and bring technology to market rapidly, U.S. competitiveness will continue to erode -- no matter how ambitious or far-reaching government technology policy is,' the Council on Competitiveness warns. (Carey, 1991, 129.)


Time to Market

"What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)

He who hesitates is lunch. (Art Zimmerman, "These Materials are Downright Precocious," Business Week, Sept. 16, 1991, 112J; Olive, 1991, 15.)

If it works, it's obsolete. (Gellman, 1989, 93.)

Rapidly shifting consumer tastes and increased global competition necessitate short product design cycles and responsive manufacturing facilities; economies of scope replace economies of scale. (Warner, 1987, 55.)

Competing in time is a new idea that is changing the practice of management in profound ways. Many managers now believe that time is becoming an important basis for competitive advantage. Retailers, manufacturers, insurers and bankers have been able to cut product development cycles and delivery schedules by 90 per cent or more. (Gellman, Quick Response is the New Competitive Edge, 1990, 25.)

In the 1990s, 'time to market' will be the clarion call that drives the electronics industry. (Corrigan, 1990, 68.)

Established firms want to move faster. They want to improve mainstream business performance, but they also want to shift into newstreams quickly, to speed up cycle time -- the time it takes to implement and commercialize new technologies. (Bachmann, 1990, 312.)

The firm that is first to market often can command premium pricing because of its de facto monopoly. Early entrants are able to achieve volume break points in purchasing and production sooner than laggards, and they gain market share. (Bachmmann, 1990, 312.)

What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.' (Weber, Battle Cry of the '90s, 1990, 80.)

Technology, Appropriate - See Appropriate Technologies

Time to Market

"What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)


Technology - Benefits

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

Technological Restructuring - Questions about the Automation of Work

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. (David Kahn, "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, 16 Sept. 1991, 5.)

Technological Restructuring - Obsolescence of Workers

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Technological Restructuring - New Technology Not Creating Jobs

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald, "A Remarkable Job Machine," Business Week, 25 June 1984, 45.)

Technological Restructuring - Fate of Employees

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)


Technological Restructuring - Employment Forecasts

Overall, the U.S. is undergoing shifts in employment similar to those that have taken place regularly since the industrial revolution. When millions of jobs were lost on farms, new ones in industries such as steel and textiles grew up. The expansion of services and the shrinkage of some older occupations now are signs of the same natural growth and aging process. As long as American business can maintain its flexibility and innovative spirit, the number of Americans at work should continue to grow. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Technological Restructuring

Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: “Restructuring will be a way of life for a long, long time." (Russell, 1987, 47.)


Technological Restructuring - Payroll Gains

Workers who use computers earn an average of 10% to 15% more than those who don't, even for the same job. Secretaries who use computers, for instance, enjoy a premium of up to 30%. (Business Week, June 14, 1993, 68.)

Temporary Staff - See Employment Trends - The Rise of Temporary Staff

Technological Restructuring - Impact on Workers

Job growth is barely sufficient to support the pace of income and spending necessary to guarantee the recovery's survival. Incomes are already stretched thin, as consumers try to pay off burdensome debts and replenish their skimpy savings. (James C. Cooper and Kathleen Madigan. 1991. "Recovery-Room Report: The Patient is Still feeling Weak," Business Week,. Sept. 23, 31.)

Revolutions are always bloody, and the productivity revolution is no exception. As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the economy grew by 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder why so many Americans are distressed: They see their paychecks lagging inflation and they worry about joining their families and friends in the ranks of the unemployed. To these folks, the productivity revolution is a threat, not a boon. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Technological Restructuring - Inevitability

The only way American manufacturing can revive is by becoming capital-intensive instead of labor-intensive. That means using all kinds of advanced technology, new materials, and so on. (Gina Goldstein. 1990. "Joseph F. Coates: Engineering in the Year 2000," Mechanical Engineering, October, 79.)

Technological Restructuring - Impact on Workers

Disgruntled employees don't dare leave their posts in 1991. There might not be another job down the road. So they stay and gripe. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S52.)

Technology - Beneifts

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

Technology - Costs

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. David Kahn. 1991. "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 5.

Technological Restructuring - Technological Displacement

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

What happens to laid-off workers? How long are they likely to stay unemployed? What are their chances of finding similar work? How will their new pay compare with former earnings? Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 24.

Perhaps the most striking aspect of the latest [Bureau of Labor Statistics] survey results is the downward mobility of so many workers. The median nominal wage of reemployed workers declined by 11.8%. Over 40% of workers back at full-time jobs were earning less than they had on their old ones, and more than 25% suffered pay cuts of 20% or more. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 1991, 24.)

Technological Restructuring - European Experience

"There was such hope for the single market," laments Alcatel's [Chairman Pierre] Suard. "Now, people see it's here, but unemployment continues to rise. It's extremely dangerous." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Technological Restructuring - Costs - Impact on Employment

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.)

Although the number of people in high-tech occupations will continue to grow, it will be dwarfed by jobs requiring little or no higher education. An additional 53,000 computer technicians will be needed by 1995, but business will be looking for 800,000 building custodians. Observed Stanford University Researchers Russell Rumberger and Henry Levin in a recent study: "Neither high-technology industries nor high-technology occupations will supply many new jobs during the next decade." John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.

Technological Restructuring - Unions

The plight of the once highly paid but now displaced workers has spawned an exceptionally varied response. Some critics maintain that the heavily unionized employees have simply priced themselves out of jobs. Says Marc Bendick, senior research associate at Washington's Urban Institute: "The supergood industrial jobs, which pay superwages for relatively low skills, will disappear because of competitive pressures." To others, the laid-off employees are a national crisis. Says Chrysler Chairman Lee Iacocca: "To keep telling the people out of work in Pittsburgh or Detroit that they should become computer technicians or go into a service business is just a cruel hoax." (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

Technological Restructuring - Employees must change

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.) Supposed to," Business Week, October 21, 23.)

Technological Restructuring

A shakedown is rocking the industry. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)


Training - Training does not help

On the face of it, the case for generous public support for training is strong. Unskilled people are much more likely to be out of work than skilled ones: if only their qualifications could be improved, they might find jobs more readily. Not only would they benefit, but so would the economy as a whole. A better trained workforce would be a more productive one; so more training ought to mean not just lower unemployment but also faster growth and higher living standards. Unions like training programmes because they can use them to push up wages. Academics like them because they increase the demand for education. Parents like them because they give out-of-work, out-of-school youths something to do. Prophets of post-modern society praise them as part of an ethic of life-long learning. And employers don't mind them because the public pays the bill. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In a growing body of research, economists have compared groups of unemployed people who enter government training schemes with similar groups who do not. In almost every case, these studies have found that the schemes have failed to improve either the earnings or the employment prospects of their clients. After surveying the results of various broadly-based training programmes for unemployed adults, the training-friendly OECD was forced to conclude in 1994 that there is "remarkably meagre support for the hypothesis that such programmes are effective." ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In the United States, the Department of Labour runs $5 billion-worth of elaborate training schemes directed at the disadvantaged. How much do they help the clientele? "Zero is not a bad number," concludes James Heckman of the University of Chicago, who directed a government-financed study of the Job Training Partnership Act, America' largest such programme. It found that, for those aged under 21, training had no effect at all, and may even have caused young men to lose earnings. ... There is nothing new about this. A study of 22 pre-1977 training programmes for the poor found that while women saw some increases in earnings. the results were mixed, or even negative, for adult men and young people. ... Britain's experience is similar. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

Back in the 1980s, Australia's Bureau of Labour Market Research did long-term, rigorous studies of its government job-creation schemes. The results were so embarrassingly bad, claims Judith Sloan of the National Institute of Labour Research, that the bureau was shut down. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

A final piece of evidence comes from Sweden, which also spend lavishly on training the unemployed, and is beginning to wonder whether the policy is worth it. Sweden's parliament commissioned three economists to study the country's long-admired "active labour-market programmes", including job-search assistance, training and relief work. The authors concluded in 1995 that while retraining might raise, slightly, the chances of employment, it does so at higher cost, and to less effect, than simple job-search advice. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

The OECD reported research that evaluated four German programmes -- two offering further training and two retraining for the unemployed. The result: "No type of training was found to have any significant impact on the flows out of either short- or long-term unemployment, nor on the flows into unemployment." ("Training and Jobs: What Works?" Economist, 6 April 1996, 21.)

Technological Restructuring - Apologists

Careers come and go. Jobs change. This is nothing new. It's just happening far faster than ever before. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., frontispiece.)

Work is going global. We're entering the Information Age. The economy is shifting more and more towards services, and toward knowledge work. Before long, top management absolutely won't be able to run things the old way, even if it desperately wants to. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

New technologies -- especially computers and telecommunications -- have already created intense, worldwide competition for business. Soon, competition for your very own job could come from practically anywhere on earth. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Careers have already quit working liken they used to. That's not really anybody's fault. But employees and organizations are very much at fault if they, too, don't change in order to adapt. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

It does no good whatsoever to complain or be bitter about what's happening. In fact, such behavior can only do us harm. We waste precious energy if we resist, get angry, or give in to grief over all that's being lost. We jeopardize our future if we cling to old assumptions and expectations about how careers should operate.

Frankly, the world doesn't care about our opinions. Or our feelings. The world rewards only those of us who catch on to what's happening, who invest our energy in finding and seizing the opportunities brought about by change. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. (Dallas, TX: Pritchett & Associates, introduction.)

Change always comes bearing gifts. Considering the scope and speed of change these days, there will be precious gifts -- many priceless opportunities -- for those of us who play by the new rules, position ourselves right, and take personal responsibility for our future. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Your organization will keep reshaping itself, shifting and flexing to fit our rapidly changing world. That's the only way it can hope to survive in this fiercely competitive environment. Look for it to restructure, outsource, downsize, subcontract, and form new alliances.

You can also expect flexible ways of working. Duties will be constantly realigned, Short-lived assignments will be common. Maybe you'll work on a contract basis, or spend time on several project teams. You might even end up working for more than one "employer" at a time. You'll probably have a constantly new set of coworkers, more new bosses, even new careers.

You're not going to like some of this. Chance are, nobody will like it all. But that's neither here nor there. Question is, will you get with the program anyhow? (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

You need to know that resistance to change is almost always a dead-end street. The career opportunities come when you align immediately with new organizational needs and realities. When you're light on your feet. When you show high capacity for adjustment. Organizations want people who adapt fast -- not those who resist or psychologically "unplug." (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

Technological Restructuring - Impact on Manufacturing Sector - See Manufacturing Sector - Impact of Technological Restructuring

Technological Restructuring - Impact on Middle Management - See Middle Management - Impact or Technological Restructuring

Technological Restructuring - The End of Work

Even companies still earning healthy profits have eliminated thousands of jobs, and are wielding the axe most enthusiastically among the middle-ranking, white-collar staff on whom they rely most for their success. With extraordinary zeal, western firms have embraced the idea that the best way to cope with a fast-changing world is not only to slash jobs, but also to scrap any promise of long-term, full-time employment to surviving, employees, and then to demand more effort and risk-taking from those same people. At the stroke of a pen, many have been turned into subcontractors or 'consultants'. Those still on the payroll are being 'empowered' to make their own decisions and told that their future depends on the success or failure of their teams, not an the company's overall health. (Economist, 17 June 1993 quoted in Chris Freeman and Luc Soete, Work for All or Mass Unemployment? London & NY: Pinter, 1994, 8.)

Technological Restructuring - Myths Exploded

High technology will destroy more jobs than it creates. The new technology has fewer parts and fewer workers and produced more product. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 3.)

Technological Restructuring - Is Destroying Work

The problems of plant showdowns and technological change in production industries is fairly well known, but we lack reliable information concerning the fate of displaced workers, and our social knowledge of the effects of technological change and corporate restructuring is virtually nonexistent. Until recently, most economists, business analysts, and sociologists assumed that the long-term decline of manufacturing employment was not a serious social issue because of the concomitant expansion of such industries as financial services, insurance, and retail and wholesale trades. The guiding assumption here was that the expansion of jobs in these industries would absorb those who lost their production jobs. For forty years after World War II, this assumption proved more or less valid for large numbers of younger workers. Now, however, contemporary trends in major financial corporations point to mass layoffs among middle managers as well as clerical employees: consolidation of computer services may cause skilled operators and programmers to seek jobs in other sectors; a glut of college graduates has saturated the job market, changing the criteria for employment in sectors that traditionally did not hire the educated; recent M.B.A.'s are being hired to replace senior managers and reduce payroll costs; and there has been a dramatic increase in part-time and contract employees replacing permanent staff. These changes have become apparent since the "crash of'87." Wall Street layoffs have become a daily occurrence, spreading to banks and other financial institutions. These layoffs are a result of three factors: corporate mergers that result in reorganization and allow for downsizing, that is, the elimination of workers who duplicate services; the rapid spread of technological innovations such as telecommunication systems; and more advanced computer networks that eliminate workers even as productivity rises. In banking, the combination of these changes has already led to layoffs among some of the country's leading banks, including Chase Manhattan, Bank of America, and Chemical Bank-Manufacturers Hanover Trust.

Prevailing economic wisdom explained the puzzlement of what became known as the "jobless recovery" in two ways: by ascribing the job cuts to the industrial restructuring necessary to make the economy more "efficient" in a highly competitive global market and the more pessimistic view that real growth, including jobs, could not occur in a debt-ridden economy.

The optimists argued that global restructuring has forced U.S. industries to become meaner and leaner. America's weakened competitive position had to be improved through efficiencies such as technological change that reduced the size of the factory labor force; mergers and acquisitions that eliminated redundancy, which resulted in plant closings and consequent elimination of "excess" workforces; and applying a hatchet to "overhead" costs such as clerical workers and middle management. The large tent under which these changes were made is the term productivity. Everything, including jobs, had to be sacrificed to make the worker more productive. Included in these measures were company demands for wage concessions, substantial cuts in health and pension benefits, and conversion of many permanent jobs to temporary and part-time work. Many experts argue that "leaner and meaner" production is the right medicine for the U.S. economy. For example, many of the largest industrial corporations were converting to "flexible specialization," better known as "just-in-time" production methods. Instead of building huge inventories, a growing number of industrial companies were producing only enough to meet orders. This method yields savings in warehousing, truck fleets, and the labor needed to operate them. While advocates acknowledged that this innovation might result in smaller workforces, they contend that joblessness today might be the necessary prelude to full employment tomorrow.

The second explanation, more sobering, emphasized the role of huge federal and consumer debt accumulated between the late 1970s and the early 1990s that has drained public and private investment, inhibiting recovery and growth. According to this view, economic growth, including more jobs, may not be possible unless investors are encouraged to pour money into productive activity instead of into high-interest-bearing paper such as Treasury bills, municipal bonds, and instruments used by government to pay the huge debt service to banks and other large institutional investors. Following this analysis, President Bill Clinton proposed an economic plan to reduce government spending and raise taxes rather than create new jobs, except for some work repairing bridges and roads. According to many fiscal and economic analysts, any sustained economic growth requires reinstituting austerity, initiated first by the Carter administration in the late 1970s but disrupted by Ronald Reagan's subsequent massive military buildup, which expanded the credit system to the breaking point even as his administration tried, in the name of austerity, to cut entitlements to the bone. In this view, the party is over and Americans will have to learn to tighten their belts further. They can expect little from the federal government and may be required to give back some of the already enfeebled welfare-state benefits. Where Reagan and George Bush failed, Clinton can succeed because only a Democrat can persuade the working class to sacrifice its historical memory. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 2-4.)

The paradox is that even when business investors pour substantial portions of their capital into machinery and buildings, these investments do not significantly increase the number of new, permanent, full-time jobs. Computerized machines employ very little direct labor; most of it is devoted to setup, repair, and monitoring. The actual production process is almost laborless because control over it is now built into the machines by computer processes such as numerical controls, lasers, and robotics. In short, comptuter-based technology inherently eliminates labor. The more investment in contemporary technologies, the more labor is destroyed. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 6.)

In this book we argue that the progressive destruction of high quality, well-paid, permanent jobs is produced by three closely related developments.

First, in response to pervasive, long-term economic stagnation and to new scientifically based technologies, we are experiencing massive restructuring of patterns of ownership and investment in the global economy. Fewer companies dominate larger portions of the world market in many sectors, and national boundaries are becoming progressively less relevant to how business is done, investment deployed, and labor employed. As the North American Free Trade Agreement illustrates, there is no reason other than political considerations to value the concept of the nation with respect to the production and distribution of goods and services. As much as machinery, organization at the level of the corporate boardrooms and the workplace is a crucial technology of labor destruction.

Second, the relentless application of technology has destroyed jobs and, at the same time, reduced workers' living standards by enabling transnational corporations to deterritorialize production. Today, plant and office locations are less dependent on geographic proximity to markets, except in the case of some services. Informatics, of which computer-mediated processes are the most common in financial, retail, and wholesale services, permit production and services to be dispersed throughout the globe with impunity. Increasingly, electronically transmitted information is the medium of business, and for the most part it does not depend on place.

Third, National Public Radio recently reported that a number of U.S. corporations were locating their design and development activities in India, where, they claimed, systems analysts, programmers, and engineers were highly competent and much lower paid than their Western (American) counterparts. Similarly, Du Pont is preparing to build a major synthetics fiber and petrochemical facility in Shanghai. In the past, U.S. scientific and technical experts were largely responsible for designing and supervising foreign plant construction, but Du Pont is employing Chinese engineers, chemists, and technicians, many of whom were trained in the United States and other advanced industrial countries and others who were not. These cases illustrate a second theme of this book: informatics not only displaces and recomposes manual labor but also displaces technical and scientific labor-a new and expanding frontier of global restructuring. As we shall see, because these are most of the new "quality" jobs about which economists and political leaders speak, we argue that there is absolutely no prospect, except for a fairly small minority of professional and technical people, to obtain good jobs in the future.

Consequently, whatever validity it had in the past, the neoclassical economic philosophy and the policies it engenders, according to which economic growth leads to relatively full employment and higher living standards, are rendered obsolete by recent developments. If the economy respects no national boundaries, the impact of nationally based fiscal, monetary, and industrial policies are severely limited, just as labor and welfare policies that are not truly international in scope and application are fated to be eroded. Forget the old social-democratic slogan of full employment in a humane welfare state. Abolish the welfare bureaucracy and decommodify work by separating work from income. Even with considerable political will, national governments by themselves can do next to nothing to overcome the new conditions of life and labor. The old slogan "international labor solidarity" is now a practical political proposal to achieve redistributive justice. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 8-9.)

The era of “jobs, jobs, jobs” and all that this slogan implies is over. Wev suggest that if justice depends on employment and the good life depends on the rewards of hard work, there can be no justice, and the good life may be relegated to a dim memory. (Stanley Aronowitz and William DiFazio, The Jobless Future: Sci-Tech and the Dogma of Work. Minneapolis and London: University of Minnesota Press, 1994, 10.)



Question: What will happen to organizations that don’t keep up?

In today's sea of information, facilities that don't keep moving will sink, says this computer consultant. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Information management is a growth field in today's long-term care -- so much so that facilities that don't grow with it put their survival at risk. Increased pressures from payment sources, government and management for more information make information systems mandatory for all nursing homes. Yet many facilities have yet to computerize -- and many of those that have are reluctant to confront the prospect of spending thousands of dollars more to upgrade to more capable systems.

This is understandable. Over-reliance on Medicaid, the rise of managed care contracting for service at the lowest prices and the growth of competing levels of care, such as assisted living and home health care, have put nursing homes under financial pressure. Even so, as the nursing home industry moves from the cottage industry of the past to being a major player in networks of care, information is the key to success. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Question: What is the significance of the advent of computerized systems?

Computers represent a major change in the ways facilities conduct business. Competent systems can help care providers plan care, document it and provide sound information to administration for decision-making. Computer systems are increasingly necessary to bill for services. And the integration of these clinical and administrative functions is a major reason to upgrade systems. (David Oatway, RN, “No Time to Stand Still,” Nursing Homes, January 1997.)

Question: What is wrong with paper medical records?

Paper patient records are proving increasingly inadequate to meet the modern information needs of group practices. Computerizing patient records can improve physician access to patient information and thereby also improve patient care and outcomes management By investing in a computerized patient record system, practices can optimize revenues by saving labor costs associated with record retrieval, photocopying, filing, and other processes. (Nelson, Rosemarie. “Computerized Patient Records Improve Efficiency And Patient Care,” Healthcare Financial Management, April 1998, 86.)

Group practices are finding that paper patient records are failing to meet their advanced information needs. Paper charts are an inefficient medium for retrieving and transferring information, are labor-intensive to maintain, and require a large amount of storage space. And it is difficult to turn the data in paper records into meaningful information easily. Physicians and practice managers, therefore, are turning to computerized patient records to improve access to patient information, provide better care, and improve their outcomes management efforts. (Nelson, Rosemarie. “Computerized Patient Records Improve Efficiency And Patient Care,” Healthcare Financial Management, April 1998, 86.)

Question: What is the climate of opinion in corporate travel today?

Over the past three years ... fee-based agency pricing became fashionable; net fares, all the rage; fresh ideas surfaced with new technology entrants; Internet, intranet, and extranet entered the lexicon; and technology associations, newsletters, and conferences proliferated. (Kevin P. Mitchell, president of Business Travel Contractors Corporation, "Distribution Reform Stalls," Business Travel News, 9 June 1996, 10.)

1996 was a year like no other in the post-deregulation era of the airline industry. Cost reduction has taken a back seat to maximization of profits through revenue generation. (Dr. James D. Parker in Kevin P. Mitchell, president of Business Travel Contractors Corporation, "Distribution Reform Stalls," Business Travel News, 9 June 1996, 10.)

Question: Is the travel agent in trouble?

The [commission] cuts have forced the industry to look at the agent role even more critically. Today, agents are not simply booking reservations; there is a much greater need for reservationists to be in a consultative role with travelers. Ideally, point of sale technology enables them to spend more quality time with customers by automating several basic processes, giving agents valuable customer data and taking away the complex coding necessary to navigate the CRS environment.

Corporate customers [are pushing] their agencies to hold down costs, speed up service and get reservations right the first time. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

What agents were doing up to now was time-consuming, but smarter systems on the front end can fix mistakes and then computers do the rest. (Earl Foster, global travel manager at Joseph L. Seagram & Sons in Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

Question: What has been the travel agents’ response to commission cuts?

The '95 commission cap and the most recent cuts have spurred agencies to evaluate [POS] technology more closely, [but] point of sale technology predates the caps. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

Question: What has been the airlines’ strategy regarding the new travel world that existed after commission cuts?

"If a corporate customer does business in a way that's cheaper, we'd discuss a discount." (Northwest Airline's vice president of distribution planning Al Lenza] said. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

Question: How did direct links between buyer and seller arise in corporate travel?

Among those talking direct links are not just corporations, but agencies as well, [Avis worldwide marketing vice president Bob Cardillo] said. "Right now we're not having any discussions with mega agencies about diverting business from the GCDS, but we are talking about jointly developing something they can package for their corporate accounts." (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

Question: What has been the impact of the commission cuts?

With the recent airline commission cut we are all trying to reduce costs. (Kevin Killeen, corporate travel manager, General Motors Corp., in Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 48.)

Question: What can we expect in new travel technology?

Coming to the fore in 1998 will be a more widespread use of graphical user interfaces on the front end, allowing the reservationist to work in Windows, with drop-down menus and click-and-drag options, instead of typing in arcane codes. (Susan Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 10 Nov. 1997, 48.)

Question: What trends will arise in corporate travel in the immediate future?

[Sabre's Terry Jones] said the trend toward travel agencies charging management fees likely will drive more dollars to the online channel, perhaps including agents who find it a cheaper way to book low-revenue tickets. And he suggested the travel industry watch the burgeoning relationships the three main booking sites are developing with search engines: Expedia with Lycos, Preview Travel with Excite and Trevelocity with Yahoo. (Jay Campbell, "Tech Vendors Still Optimistic, Despite Slow Start," Business Travel News, 10 Nov. 1997, 13.)

Question: How have corporatre travel agents responded to commission cuts?

The commission reduction, a deliberate move by the airlines to increase costs for the business traveler, will not be remedied by working with suppliers directly. (Mike Spinelli, president and CEO, American Society of Travel Agents, "Direct Supplier Links Won't Replace Agents," Business Travel News, 10 Nov. 1997, 14.)

Question: Should there be fees for the use of travel agents?

There are many financial options available, one of which is a direct payment of a travel agent management fee that eliminates the need to renegotiate their agency compensation package every time the airlines decide to alter commissions.

An agency management fee is a great option for buyers because it enables the agency and the corporation to work together to determine the exact services needed and a forum in which to apply cists. This type of compensation package creates an open business relationship with no surprises brought on by a change to the commission structure. (Mike Spinelli, president and CEO, American Society of Travel Agents, "Direct Supplier Links Won't Replace Agents," Business Travel News, 10 Nov. 1997, 14-5.)

Agency services were never free, they were included in the ticket price.

The difference is in perception. Companies will pay more attention if, instead of just taking a reduced share of commission revenue, they actually need to issue a check to the travel agency. The level of scrutiny of travel agency costs and value which emerged following the commission caps of 1995 will intensify as costs approach or exceed revenues. (Susan Stowe, consultant with Caldwell Associates, "How to Adapt to the Commission Cuts," Business Travel News, 10 Nov. 1997, 14.)

There has been a lot of emotion about change and resentment that the airlines acted unilaterally. As an industry, we need to move beyond that. We have been confronted with a permanent change in the three-way financial relationship among airlines, agencies and corporate customers. (Susan Stowe, consultant with Caldwell Associates, "How to Adapt to the Commission Cuts," Business Travel News, 10 Nov. 1997, 15.)

Question: What happened when commission cuts spread to Europe?

The commission-cutting revolution has finally hit Europe full force -- and it looks even bloodier and more dramatic than the latest round of cuts in the United States.

British Airways waited two months [before] following United's initial commission cuts. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 1.)

Question: What is the makeup of some representative automated travel booking systems?

Unisys Corp. this month will officially launch its Unisys Travel Alliance Services, an end-to-end solution for agencies and corporate travel departments that includes automated booking, data warehousing and reporting, back office accounting and expense reporting processing. (Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

Question: How does the market future look for new technology vendors in corporate travel?

I see a big, big market as this whole industry is becoming so technologically oriented. (Richard Kerr, vice president and general manager for the Litton travel and hospitality group in Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

Question: Have events had an impact on trust in corporate travel?

The airline industry suffers from deep mistrust among many parties. Airlines don't trust travel agencies, consumers don't trust airlines, corporations don't trust airlines and travel agencies may never trust their airline distribution "partners" again. Mistrust is very costly. (Kevin Mitchell, "Airlines Wield Unfair Leverage," " Business Travel News, 8 Dec. 1997, 14.)

Question: What benefits will come from corporations moving to automated travel booking systems?

Studies Unisys has conducted with American Express indicate that companies can lower booking costs by 30 percent by moving to automated systems. ((Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News. 8 Dec. 1997, 47.)

Question: What was the role of Business Travel News in winning acceptance for corporate travel technology?

Business Travel News's Travel Tech World ... was the place where the dream of automating the travel process began to materialize. (Cheryl Rosen, "Worldspan Debuts Business Travel System at TTW," Business Travel News, 9 June 1997, 1.)

Question: How are travel agencies responding to technological pressures?

An increasing number of travel management companies today are positioning themselves as total solution providers and doing whatever it takes to deliver on the promise. From building their own T&E expense software to private labelling a third-party system to serving as value-added retailers to acting as technology consultants, travel management companies are expanding into expense management and systems integration. (Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

Every single RFP today asks, "What is your expense reporting product?" (Laura Lanbe, manager of technology solutions for BRI Americas in Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

Danny Hood, president of corporate travel and technology for WorldTravel Partners, contends that corporations with $2 to $50 million in air volume are typically the ones looking to agencies for systems. (Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

Airlines are run by decent people. It's not that we have a Delta problem ... or a United problem. Rather, experts believe we have a systemic problem. There is growing consensus that the root cause is inadequate competition to discipline pricing and offer stakeholders more options. ... Moreover, industry observers are concerned that "predatory" airline practices will lead to even greater concentration at hub airports, further frustrating new entry and effectively limiting price competition and service to mid-size communities. (Kevin Mitchell, "Airlines Wield Unfair Leverage," " Business Travel News, 8 Dec. 1997, 14.)

In a move that underscores the growing role of the Internet -- and the shrinking role of travel agencies -- in travel distribution, United Airlines this month began moving its heretofore disk-based travel booking system onto the Web.

Unlike competitive online systems ... the new United Connection will not forward reservations to a designated travel agency. Only electronic airline tickets will be offered on all routes where that option is available; where it is not, United will mail tickets direct to customers.

"We didn't want to leave out a functionality that our customers were passionate about, but in our research, the need for a travel agency didn't hit the radar screen.," said United director of electronic distribution Mark Koehler. (Cheryl Rosen, "United Shifts Booking to Web," Business Travel News, 8 Dec. 1997, 8.)

"It seems as though after the first round of commission caps, agencies celt that they needed to stop spending money in order to survive."

This time around, however, the agencies "are saying, 'I have got to get technology in here if I am going to stay competitive,'" [sales and marketing vice president Bridgette] Christianson said. (Cheryl Rosen, "Aqua Gains Speed and Interfaces," Business Travel News, 8 Dec. 1997, 10.)

Agents are not safe

Since the latest commission cuts, travel agencies are striving to redefine how they do business. (Mary Ann McNulty, "Tech Outsourcers Target Travel," Business Travel News, 8 Dec. 1997, 3.)

"For the moment it is difficult to book direct but I think soon we will not need travel agents," said [Skanska travel manager and chair of the Norwegian Travel Managers Association Else] Becher, who was not concerned about losing data [an issue travel agents said would arise]. "Most clients in Norway are connected to credit cards, which provide a lot of services," she said, adding that electronic travel management systems will enable corporates to handle many travel agency functions in-house in the near future. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 44.)

BA head of U.K. and Ireland sales Dan Brewin has not ruled out net fares but said he could not eliminate the commission structure overnight for fear of putting [travel] agents out of business.

In the longer term, the probability is that percentage commissions are not the way forward," he said. "A fixed payment for the cost of transaction would be, but that is not on my agenda at the moment. I would be happy to see a business-to-business relationship develop between us and corporate clients, and for them to be recompensing [travel] agents. (Jay Campbell and Amon Cohen, "BA, SAS Cut Commissions," Business Travel News, 8 Dec, 1997, 44.)

Originally, travel agency commissions were paid because agents developed new business for the airlines, in addition to the routine functions of taking reservations and writing tickets. While leisure agents still generate additional travel, corporate agencies can hardly argue that they are developing new business. The process of taking reservations and issuing tickets has also become much more efficient -- printed tickets are now unnecessary on most business routes. ...

Can your agency survive and make a profit with 8 percent commissions? Probably - if it has reengineered its procedures [and] eliminated unnecessary staff positions. ... Have you streamlined internal and agency processes as much as possible? Are you using electronic tickets? You may want to accelerate review and decision making on automated self-booking and T&E reporting systems. Once you achieve significant usage of e-tickets and self-booking, agency fees should be reduced. ...

Travel agencies have had incomes cut twice in as many years, without notice. Most travel agencies now feel virtually powerless in an equation where major airlines exercise market power to shift costs and dictate terms and conditions. While few would dispute an airline's right to change its commission structure, no business responds well to unexpected news that impacts its investment strategies and earnings, and disrupts its best customers. (Kevin Mitchell, president of Business Travel Contractors Corp., "Airlines Wield Unfair Leverage," Business Travel News, 8 Dec. 1997, 13.)

1998

The Odyssey of One Firm to Electronic Booking

Thomson Consumer Electronics this week ... becomes the first [travel] buyer to mandate that arrangements for travel from one corporate site to another only can be made electronically.

When the system is fully deployed, travel arrangements for employees will no longer be accepted by the agency over telephone. (Cheryl Rosen, "Thomson Mandates Tech," Business Travel News, 26 Jan. 1998, 1.)

For Thomson [Consumer Electronics], the choice of the Worldspan system comes almost three years after [travel manager Cindy] Heston first began looking into travel booking systems, begun after Sabre first announced it would be developing a system at the 1995 NBTA conference. Intrigued, Heston approached Worldspan and signed on for Travel Shopper, an e-mail based, off-the-shelf system developed by the CRS in the '80s. A year later, Worldspan "started seriously looking a building a product and putting programmers to work on it," Heston said. By November 1995, thanks to an incentive program that rewarded users with free hotel room nights and other prizes, Heston had moved 105 travel arrangers -- and 10-15 percent of Thomson's domestic travel -- off the phones and onto e-mail.

" I wanted to test the waters and see if we would even be interested in automated booking," Heston said. And, added domestic corporate travel manager Debby Shircliff, the early start helped identify travelers and travel arrangers interested in and accustomed to technology, who now will serve as the first testers of Trip Manager.

The success of the early system convinced not only the travel department, but senior management as well. "Once it was in place and the commission cuts continued to come, the executive committee, which is made up of the heads of all the departments, said okay, this is good. Now let's improve on it," Heston said. ...

In internal beta testing at Thomson since September, Trip Manager this week will be rolled out to about 300 travelers and travel arrangers in the United States and Mexico. ... Thomson again plans an incentive program to encourage change in travelers' behavior. Heston will ask her airline partners for free tickets to offer as raffle prizes for online bookers in return for linking the Thomson booking site to the airline Web site. With the raffle as a carrot and the mandate as a stick, she expects to move 30-35 percent of Thomson's $40 million domestic air volume onto Trip Manager. (Cheryl Rosen, "Thomson Mandates Tech," Business Travel News, 26 Jan. 1998, 50.)

While not everyone has the resources of financial position to deploy technology at the same rate, the mega agencies are able to use economies of scale to head the pack in the POS technology push. (Sarah Welt, "Corporate Agencies Implement Point-of-Sale Systems," Business Travel News, 26 Jan. 1998, 51.)

For a few years, I've hoped for an "orderly transition to the new market." These times are anything but orderly. My hope is that the suppliers will use their new wealth to forge new partnerships based on value and respecting a shock absorber system that has served them well for years. Whether we call ourselves travel agents, travel management firms or distribution agents, we all need to remember the customer is master of the house. Furthermore, the airline-agency dependency is over. We can't count on having everything given to us. To compete, we must do what we do better, cheaper, and faster and prove it every day to our customers and industry partners. Or else, we may end up on the Thanksgiving table. (Jack Alexander, CEO of WorldTravel Partners, "For Travel Agents: a "TRussed" Issue," Business Travel News, 26 Jan. 1998, 15.)

My fear is that in the new age of efficiency, technology, high loads and increasing yields, the airlines won't have a conscience. (Jack Alexander, CEO of WorldTrravel Partners in "For Travel Agents: A "Trussed" Issue," Business Travel News, 26 Jan. 1998, 14.)

"No one wants to see us disappear. Everyone wants to see us sell more of their particular product," [Roger Black at Carlson Wagonlit] says. "The suppliers are going to continue looking at the balance, seeing if there is something they can do to enable their company to make more money. That's what everybody tries to do. Every travel agent has to ask the same question: 'Are we as efficient as we can be? Are we charging fairly? Can we charge more?'"

After all, he says, "This is not a charitable foundation. We're here to try to maximize our profits also." (Gary Langer, "Travel Agency Compensation," Travel Counsellor, Feb. 1998, 42.)

"We're worried," says [Jere Glover, chief counsel for advocacy at the Small Business administration] of the latest rounds of commission cust. "We are concerned about the profitability, that we are spreading fewer dollars among more businesses. ... It's too early to know what impact that is going to have and whether the industry can adjust." (Kate Rice, "The State of Small Business," Travel Counselor, February 1998, 30.)

"What's behind the scenes is that the CRSs are stabbing travel agents in the back," says Bruce Bishins, president and CEO of United States Travel Agent Registery (USTAR), the company behind the Genesis project, a would-be alternative distribution channel. "The CRSs have too many irons in the fire. They've been very feai-weather with respect to who their customers were and who would support them. Now, by going into the commercial accounts arena and the public arena, they are making the travel agent's customer a CRS customer." (William J. McGee, "The Changing Shape of The CRS Industry," Travel Counselor, February 1998, 44.)

[Mike Estill, chair of the American Society of Travel Agents' travel technology commitee and owner of Estill International Travel service] weighed in, as well: "The major CRSs are pretty much used to treating their client base like trash, and they can do it because most agents have to use them." (William J. McGee, "The Changing Shape of The CRS Industry," Travel Counselor, February 1998, 44.)

We see many new electronic forms of agency bypassing popping up on the Internet. Although we need to stay informed of these new competitors, we should not fear the Internet. (Scott Ahlsmith, retail travel agency owner, "Developing an Internet Strategy," Travel Counselor, February 1998, 50.)

The travel agent tries to love the Internet

It is easy to view the Internet as a foe. We see many new electronic forms of agency bypassing popping up on the Internet. Although we need to stay informed of these new competitors, we should not fear the Internet. ...

Human nature causes each of us to hesitate and pause when we encounter new circumstances. When we don't know what to expect, we tread carefully. In the case of the Internet, it won't hurt you. In fact, if you use it to increase your agency's visibility, improve your interaction with your customers and access a wealth of new and valuable information, you'll learn to love it -- and wonder how you ever sold travel without it. (Scott Ahlsmith, "Developing an Internet Strategy," Travel Counsellor, Feb. 1998, 51.)

Let's stop being naive, suggesting travel agencts put people on certain airlines because they make more money. Not so! We book them on preferred carriers so we can expediently handle their next request, which may be just a little more difficult than the last one. Sure, taking orders is part of the business and we should not receive overrides if that's all we do. On the other hand, if we provide value, we should be paid for it. (Larry Austin, Chairman and CEO, Austin Travel, "An Overriding Issue: Service," Business Travel News, 2 March 1998, 14.)

Travel industry insiders... (Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 Apr. 1997, 1.)

Many travel tech cogniscenti agreed that the need for a central data repository is a major stumbling block. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

"Worldspan is saying, "the heck with travel agencies -- we're going to explore a new channel," fumed USTAR president Bruce Bishins. "It's a vicious betrayal of their core business and their core customers. The whole point of USTAR's Genesis Project is not to support the CRS channel that is working against us, and to build an alternative." ...

Agreed [Microsoft Travel group product unit manager Greg] Slyngstad, "We got into the travel business in the online booking arena because we feel it's about accessing information and presenting that information in an easy-to-understand fashion, and that's a skill we've developed over the years. As the travel purchasing process moves to the desktop, it's going to involve integration with corporate computing solutions they have in place, and therefore to a partnership of the travel manager and the MIS manager. We're the best at marketing to MIS managers, and American Express knows how to market to travel managers." ...

Travel managers should be looking at technology products as a new opportunity, rather than simply writing them off as something their travellers neither want nor need, Wilkinson said. (Cheryl Rosen, "Enter Microsoft," Business Travel News, 29 July 1996, 1 and 22.)

American proposes a system that can replace travel agents and reservationists

[American Airlines'] new AAccess Interactive Travel Network ... includes ... automated boarding, ticketless travel and online booking for both individuals and corporations. Other future technology initiatives for American will include a test of curbside and terminal checkin using wireless technology and the development of software that shows AAdvantage members how to maximize mileage accrual on a given trip. (Jay Campbell, "AA Testing Smart Cards," Business Travel news, 29 July 1996, 2.)


Training does not help

On the face of it, the case for generous public support for training is strong. Unskilled people are much more likely to be out of work than skilled ones: if only their qualifications could be improved, they might find jobs more readily. Not only would they benefit, but so would the economy as a whole. A better trained workforce would be a more productive one; so more training ought to mean not just lower unemployment but also faster growth and higher living standards. Unions like training programmes because they can use them to push up wages. Academics like them because they increase the demand for education. Parents like them because they give out-of-work, out-of-school youths something to do. Prophets of post-modern society praise them as part of an ethic of life-long learning. And employers don't mind them because the public pays the bill. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In a growing body of research, economists have compared groups of unemployed people who enter government training schemes with similar groups who do not. In almost every case, these studies have found that the schemes have failed to improve either the earnings or the employment prospects of their clients. After surveying the results of various broadly-based training programmes for unemployed adults, the training-friendly OECD was forced to conclude in 1994 that there is "remarkably meagre support for the hypothesis that such programmes are effective." ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

In the United States, the Department of Labour runs $5 billion-worth of elaborate training schemes directed at the disadvantaged. How much do they help the clientele? "Zero is not a bad number," concludes James Heckman of the University of Chicago, who directed a government-financed study of the Job Training Partnership Act, America' largest such programme. It found that, for those aged under 21, training had no effect at all, and may even have caused young men to lose earnings. ... There is nothing new about this. A study of 22 pre-1977 training programmes for the poor found that while women saw some increases in earnings. the results were mixed, or even negative, for adult men and young people. ... Britain's experience is similar. ("Training and Jobs: What Works?" Economist, 6 April 1996, 19.)

Back in the 1980s, Australia's Bureau of Labour Market Research did long-term, rigorous studies of its government job-creation schemes. The results were so embarrassingly bad, claims Judith Sloan of the National Institute of Labour Research, that the bureau was shut down. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

A final piece of evidence comes from Sweden, which also spend lavishly on training the unemployed, and is beginning to wonder whether the policy is worth it. Sweden's parliament commissioned three economists to study the country's long-admired "active labour-market programmes", including job-search assistance, training and relief work. The authors concluded in 1995 that while retraining might raise, slightly, the chances of employment, it does so at higher cost, and to less effect, than simple job-search advice. ("Training and Jobs: What Works?" Economist, 6 April 1996, 20.)

The OECD reported research that evaluated four German programmes -- two offering further training and two retraining for the unemployed. The result: "No type of training was found to have any significant impact on the flows out of either short- or long-term unemployment, nor on the flows into unemployment." ("Training and Jobs: What Works?" Economist, 6 April 1996, 21.)

In early November [1996], Michael D. Eisner of Walt Disney Co. realized a stunning $197 million gain on stock options. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

Every investor dreams of beating the market. ("Dean Foust, "Talk about a Glitch in the System," Business Week, 9 Sept. 1991, 82.)

Careers come and go. Jobs change. This is nothing new. It's just happening far faster than ever before. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., frontispiece.)

Work is going global. We're entering the Information Age. The economy is shifting more and more towards services, and toward knowledge work. Before long, top management absolutely won't be able to run things the old way, even if it desperately wants to. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

New technologies -- especially computers and telecommunications -- have already created intense, worldwide competition for business. Soon, competition for your very own job could come from practically anywhere on earth. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Careers have already quit working liken they used to. That's not really anybody's fault. But employees and organizations are very much at fault if they, too, don't change in order to adapt. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

It does no good whatsoever to complain or be bitter about what's happening. In fact, such behavior can only do us harm. We waste precious energy if we resist, get angry, or give in to grief over all that's being lost. We jeopardize our future if we cling to old assumptions and expectations about how careers should operate.

Frankly, the world doesn't care about our opinions. Or our feelings. The world rewards only those of us who catch on to what's happening, who invest our energy in finding and seizing the opportunities brought about by change. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. (Dallas, TX: Pritchett & Associates, introduction.)

Change always comes bearing gifts. Considering the scope and speed of change these days, there will be precious gifts -- many priceless opportunities -- for those of us who play by the new rules, position ourselves right, and take personal responsibility for our future. (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., introduction.)

Your organization will keep reshaping itself, shifting and flexing to fit our rapidly changing world. That's the only way it can hope to survive in this fiercely competitive environment. Look for it to restructure, outsource, downsize, subcontract, and form new alliances.

You can also expect flexible ways of working. Duties will be constantly realigned, Short-lived assignments will be common. Maybe you'll work on a contract basis, or spend time on several project teams. You might even end up working for more than one "employer" at a time. You'll probably have a constantly new set of coworkers, more new bosses, even new careers.

You're not going to like some of this. Chance are, nobody will like it all. But that's neither here nor there. Question is, will you get with the program anyhow? (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

You need to know that resistance to change is almost always a dead-end street. The career opportunities come when you align immediately with new organizational needs and realities. When you're light on your feet. When you show high capacity for adjustment. Organizations want people who adapt fast -- not those who resist or psychologically "unplug." (Price Pritchett, The Employee handbook of New Work habits for a Radically Changing World. Dallas, TX: Pritchett & Associates, n.d., n.p.)

Virtually every supplier was offering the client-server system it promised last year -- as well as a new version, accessible by dialing into the Internet, but on a private and secure Website for corporate employees only. (Cheryl Rosen, "Industry Goes Intranet," Business Travel News, 19 Aug. 1996, 1.)

Sabre is rolling out an intranet-based version of its Business Travel Solutions to its first corporate customer. (Cheryl Rosen, "Industry Goes Intranet," Business Travel News, 19 Aug. 1996, 1.)

Two-thirds of the travel managers polled (68 percent) said they are concerned about losing their travelers' loyalty -- and their market shares -- to Internet and disk-based systems already available to individual and frequent travelers. Of the 26 percent of respondents who already have added codicils to their corporate travel policies specifically asking travelers not to book through automated systems outside the company, 29 percent reported problems in getting their travelers to comply. (Cheryl Rosen, "Industry Goes Intranet," Business Travel News, 19 Aug. 1996, 26.)

Averaging 100 rooms, [Wingate Inn] properties also will feature touch-screen checkin-checkout machines. (Linda Humphrey, "Wingate Debuts Cordless Phones," Business Travel News, 19 Aug. 1996, 4.)

"The United States is where most of the technological revolutions happen. It's a more homogeneous market, connected with one type of telecommunications, one currency, one legal system." (Janis Cannon, vice president of sales and marketing, North American, for Swissotels in Linda Humphrey, "Hotel;s Export Biz-Class Rooms," Business Travel News, 19 Aug. 1996, 6.)

Airlines have been sending TI employees diskettes to book their own travel directly and earn 500 frequent flyer miles. If travelers use the software, [TI Travel Manager Colleen] Guhin said, TI will lose control of the booking, the data and the negotiating leverage built over the past seven years. (Mary Ann McNulty, "Travel Manager of the Year," Business Travel News, 19 Aug. 1996, 8.)

The response [to TI Travel Manager Colleen Guhin's survey] was clear: Travelers wanted automation and they wanted it now, Guhin said. Top priorities were automated booking and automated expense reporting software. (Mary Ann McNulty, "Travel Manager of the Year," Business Travel News, 19 Aug. 1996, 8.)

With the tremendous surge in demand for products to automate travel booking and T&E reimbursement, it has become critical for travel buyers to manage the relationship between service levels and costs. Commission caps, and the subsequent rush to fee caps, appear largely responsible for this trend, which will accelerate if the airlines cut commissions again.

Intranets -- corporate homepages that are accessible only to employees -- will help supply this escalating demand. These sites, which are rapidly gaining popularity in corporations, create a central crossroads to distribute information and provide automated tools to ease travel purchasing. They will greatly reduce the costs of automation development because far less will be required to make applications compatible with different systems.

Creating intranets and travel management Web pages is remarkably easy compared to other corporate IS initiatives. Intranets are based on the same "protocols" (rules) and use the same programming language as the Internet. By using security programs called "firewalls," companies can restrict intranet access to designated computers inside the corporation.

Accessing intranets requires only the tools needed to access the Intranet and the World Wide Web. Access to information on an intranet does not require any specific computer, operating system or e-mail system. Neither do users need to be on dedicated and expensive local or wide-area networks. Any computer with a modem and a browser -- software that tells the computer how to display information on a Website -- is sufficient. ...

Intranets leapfrog some of the most difficult and expensive obstacles to providing PC-based booking and expense reports in an e-mail or networked company. They free up travel and IS managers to focus on the content of their site rather than on technical issues. ... Access to an intranet soon will be as common in corporate life as using the phone or reading a memo. (Tom Wilkinson, President of Travel Management Group in "Intranets Ease Travel Booking," Business Travel News, 19 Aug. 1996, 12.)

Several major vendors -- including Sabre, TravelNet and Internet Travel Network -- have confirmed that they plan to roll out new intranet-based applications. (Tom Wilkinson, President of Travel Management Group in "Intranets Ease Travel Booking," Business Travel News, 19 Aug. 1996, 12.)

[Bob] Lichtman [travel manager of Bay Networks]: "I think transaction-fee pricing is really dangerous. While you're paying $4 a transaction now, it could become a $40 transaction in a couple of years." ("Travel Buyers Assess New Automated Solutions," Business Travel News, 19 Aug. 1996, 24.)

In [a] move to lower travel agency costs and reduce the number of reservationists, virtually everyone in the industry acknowledges that the [movement toward greater use of reservation centers by large clients] is the most efficient option. Economies of scale allow state of the art calling technology and advanced point of sale systems to push down transaction costs. Industry observers estimate res center transactions to be as much as $10 to $20 cheaper than those booked through onsites. (Sarah Welt, "Res centers Rise as Rev. Falls," Business Travel News, 3 Nov. 1997, 1 + 30.)

Rising fleet costs, coupled with the shifts in ownership that have shaken up the car-rental industry here in the United States, are beginning to effect changes in the car-rental business in Europe.

As smaller, independent firms increasingly are being squeezed out by the large global brands, corporate rates are beginning to head upward in some countries.(Lynne Woods, "Global Car Cos. Change Euro Landscape," Business Travel News, 3 Nov. 1997, 1.)

The reduction of both domestic and international commissions to 8 percent by almost every major U.S. airline and many of the largest foreign flags comes at a time when economic and technological forces are reshaping the travel industry. Travel managers who have not yet jumped into the pool need to quickly get their feet wet, and those that have tested the water should consider accelerating their plans. (John Heilner, "Cuts Recast Agency, Airline and Buyer Roles," Business Travel News, 27 Oct. 1997, 12.)

The benefits of globalization are obvious: deeper discounts tried to a larger volume of business, more efficient monitoring of policy and pricing, and administrative savings due to centralized billing and tracking. (Joyce Bembry, "Global Deals Continue to Elude Corp. Buyers," Business Travel News, 4 Nov. 1996, 16.)

The reason companies do things is to grow their business, not to reduce distribution costs in the industry. (Philip Wolf of PhoCusWright in Cheryl Rosen, "Online Fee for All?" Business Travel News, 7 Oct. 1996, 25.)

United Airlines plan to offer Internet booking within the next few months. (Mary Ann McNulty, "United Airlines to Introduce Internet Booking," Business Travel News, 7 Oct. 1996, 7.)

We know [expense reporting software] will make us more productive. We're taking a totally manual process, pre-populating reports with data downloads from the corporate card and electronic funds transfer back to the bank. Our travelers think it's a home run; they love it. Finance loves not having to check the math, and that's where most of the mistakes occur. (EG&G director of travel management Thomas McCabe in Mary Ann McNulty, "Tech Co. Becomes First User of Expense Product," Business Travel News, 25 Nov. 1996, 3.)

Using an intranet allows people to roll out applications to the individual desktop without much effort from the MIS organization, and that's what's been getting all the fanfare. (Technology solutions business director at Rosenbluth International Chris Noe in Cheryl Rosen, "Service Bureau Bound," Business Travel News, 25 Nov. 1996, 14.)

Until a year ago, automating the travel booking process usually entailed a client-server computer architecture, under which the corporate MIS department had to install software on every employee's computer. The Internet offered a low-maintenance and low-cost alternative, but involved questions of security, speed and dependability that made it an imperfect choice as a platform for travel systems that demand "24x7x365" reliability. (Cheryl Rosen, "Service Bureau Bound," Business Travel News, 25 Nov. 1996, 14.)

A company installing an intranet owns the system and controls it, and can add other corporate-specific information in a very seamless way. I expect the majority of customers to move to an intranet, especially at large companies, where the cost can be distributed across many employees. Most Fortune 1000 companies already have an intranet, and a travel system is just another functionality they can make available at very little extra cost. (Microsoft travel products development manager Byron Bishop in Cheryl Rosen, "Service Bureau Bound," Business Travel News, 25 Nov. 1996, 14.)

A number of the changes [in best-practices] suggested reflect the increasing use of automation in every aspect of travel, from booking and ticketing through expense reporting. For example, a best-practice travel policy should now include policy support through electronic bookings. Included in the best practices for selecting an agency are offering alternative methods to book reservations and supporting integration of automated systems. And for communicating travel policy, a best practice is one that uses an intranet or Internet site to assist travelers. (Mary Ann McNulty, "Benchmark Software updated," Business Travel News. 28 Oct. 1996, 4.)

In 1997, most companies on the leading edge will be doing electronic bookings. We have to adapt to that. (Travel management consultant Ralph Brown in Mary Ann McNulty, "Benchmark Software updated," Business Travel News. 28 Oct. 1996, 4.)

If you look at a company that has about 500 employees and does 34 reports per employee per year, that's 17,000 reports. Multiply that by the industry low of $18 per report process, and that company is spending $310,000 a year. With [VIN.net travel expense reporting software] they would spend $42,000. (VIN.net vice president and COO Pamela Furey in Stefani O'Connor, "McCord Turns Systems Integrator with VIN.net, BTS," Business Travel News, 28 Oct. 1996, 7.)

Whether e-ticketing reduces airfares remains to be seen, but travel managers are sceptical of that trickle-down theory. (Jay Campbell, "E-Tix Accord Set," Business Travel News, 28 Oct. 1996, 21.)

We're saying we can be smarter in the way we buy things. Can we bundle it together? Can we break it apart? Can we bring different groups together to buy things at the same or better quality at a lower price? (Ely Lilly travel manager Gorge Odom in Jay Campbell, "E-Tix Accord Set," Business Travel News, 28 Oct. 1996, 34.)

We have now become a software provider, which is a bit unusual for a travel company. ("Carlson Pres Takes Stock of Americas," Business Travel News, 14 April 1997, 35.)

Customers ... are expecting us to come up with this concept on how to manage travel, research it and come up with the best solutions. In the past, we did that for free. No more. ("Carlson Pres Takes Stock of Americas," Business Travel News, 14 April 1997, 35.)

We’re intranet now; it's a trend you just can't stop. You really shouldn't have to go to the finance department to ask for this because you have to do it to stay in business today. ("Carlson Pres Takes Stock of Americas," Business Travel News, 14 April 1997, 35.)

My goal is to get my staff off the phone in 1997. I know there will always be that need to personalize the travel process, but if we can funnel people through an automated system, we can better utilize the staffers we have to accomplish that. (Franklin Quest travel manager Barbara DeBry in Cheryl Rosen, "Franklin Quest Starts Intranet Booking on Worldspan," Business Travel News, 14 Apr. 1997, 37.)

By year-end, we will have 40 percent of our transactions booked through the Internet, traveling on electronic tickets and using electronic reimbursement, with direct population of the expense report and reimbursement of the employee and the vendor. (Bob Grant, director of corporate travel, Charles Schwab &Co., in "Cos. Embrace Intranets," Business Travel News, 14 April 1997, 38.)

"Corporate customers are interested in making bookings through electronic means, such as intranets, to make sure that bookings are in line with travel policy and to integrate these bookings in MIS systems for reporting and supplier negotiations," [Rene Duchesne, general manager of Internet Travel System Inc.] said. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 26 Jan. 1998, 51.)

People are coming into the [CRS] system, spending lots of time and asking lots of questions, and then booking direct with a supplier who's promising 500 frequent flyer miles. If people are going to go outside the system to book, the things we charge for will have to be more closely tied to what we deliver. (Bill Diffenderfer, president of Ambitious' U.S. distribution company in "CRS Companies," Business Travel News. 26 May 1997, 69.)

Overrides are just a basic consumer pricing incentive, similar to loss leaders offered by grocery stores. (Tom Wilkinson, president of Travel Management Group, "Overrides: Necessary Evil or Trust Buster?" Business Travel News, 8 Dec. 1997, 12.)

In the computer world in general, the movement to network computers is being spearheaded by Oracle and Sun Microsystems, the developer of the Java programming language. To a large extent, the concept of using network computer "dumb" terminals to access files over the Internet began as a sort of revolt against Microsoft Windows' domination of the software industry. But many say it has rapidly evolved into something much larger than that....

"Microsoft's dilemma is that you don't need Windows to run network computers," [Cary Alexandre, product manager for Lotus network computer desktop products] said. "Microsoft has this Windows cash cow, and network computers threaten to commoditize the operating system." ....

For the travel industry as a whole, "moving to the Java standard instead of the Windows standard could save a tremendous amount of money in technology investment," [Norm Rose, president of Travel Tech Consulting] said. (Cheryl Rosen, "Vision of 'Computer on a Card' Inches Closer to Reality," Business Travel News, 28 April 1997, 46 + 48.)

The CRSs are the medium of today, [but] the Internet is the medium of tomorrow. ... Within three to five years, all bookings will come across the Internet. (Technology consultant Richard Eastman in Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 53.)

Even while the airlines' ability to implement the online commission cuts seems uncertain, the threat itself is causing many to question the viability of the online distribution channel if its financial underpinnings continue to erode. (Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 53.)

Said Rock Blanco, president of New media Solutions in Medfield, Mass., "The airlines were looking for an alternative distribution system, and the majestic princes from Redmond stated they would create more cost-effective distribution processes. Microsoft is behind the strategy to get suppliers to reduce the revenues to their distributors while they complete the technology necessary to implement the next generation of distribution, the DRS (Distributed Reservation System)." (Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 53.)

"If we made a mistake, it was in not going into as much detail as we needed to explain the financial proposition to the airlines. We may do that now. The airlines are saying there are no costs, but you still have to operate the software, servers, issue tickets, and respond to customers." A commission "a few points below the 10 percent is probably reasonable," he said.

Neilson cautioned that investors will pull the plug on the embryonic online booking systems if the returns are too low. "We have a tremendous opportunity to grow the online travel channel," he said. "But if we don't realize it's young and immature and needs an awful lot of coaxing to bring to life, it will die." (Microsoft vice president John Neilson in Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 53.)

Responding to the commission cut, American Express eliminated schedules, fares, and availability for United, Northwest and KLM from its online Website and American Online. "We continue to list American and Continental, as they've recognized the agency services we're providing," said spokeswoman Melissa Abernathy, who declined to reveal exactly how those carriers were doing so. "We feel the commissions that United and Northwest are offering don't cover our operating costs." (Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 53.)

Both vendors and their top clients are investing this year in the "electronic relationship." Driven by spiraling distribution costs and the World Wide Web's promise to provide a cheaper channel, travel companies in all segments confirm that they've increased resources to grow the corporate online segment in 1998. They also predict that in the next 12 months a bundle of cost-friendly pricing and technology scenarios will drop in the laps of travel managers, making them partners in removing cost from the system. The grand prize: Internet-only corporate deals that beat the net-net fares some already have negotiated. ...

To increase adoption rates by employees, ... vendors are throwing in such value-added perks as bonus miles or points, vacation discounts and private versions of "weekend deals" available on consumer sites. Some even are swapping such benefits as guaranteed room blocks in frequently sold-out cities or room upgrades for banner ads or preferred placement on corporate intranet travel sites.

While it seems everything is up for grabs in these new digital relationships, there's no such thing as a free lunch. Both sides are quickly discovering the challenges disintermediation presents for travel management. Linking directly may provide one of the greatest opportunities for cost savings, but it also creates the largest headaches -- disruptions in policy compliance, data integration and management reporting, not to mention all those delicate agency financial arrangements. ...

Still, despite the costs and hassles of direct vendor connections in their various forms -- from simple extranet booking links to full-blown custom sites -- the online travel management revolution is unstoppable, many claim.

"It's the wave of the future," said the travel manager of a Fortune 100 company. ... Fresh from a successful first year of consumer bookings -- United Connection alone reportedly rang up $115 million -- airlines are eying similar gains in the corporate market. And companies seeking relief from the rising labor costs associated with commission cuts are willing partners. (Laurie Berger, "Electronic Links to Corporate Intranets Loom Larger," Business Travel News, 26 Jan. 1998, 20.)

Most carriers agree they're having serious discussions with top corporate clients now. ... "When companies start pounding on us for net fares, the first question we ask is, what channel will you book these through"" [Mark Koehler, director of electronic distribution for United Airlines] said. "We're looking for an automated solution." (Laurie Berger, "Electronic Links to Corporate Intranets Loom Larger," Business Travel News, 26 Jan. 1998, 20.)

But the biggest news is in pricing. Bowing to pressure from competitor and online pioneer Southwest, Delta said both consumers and unmanaged business travelers will see more Internet-only fares in 1998 that are not just tied to restricted weekend deals. "If Southwest does it, we have to compete," [Vince Camininit, senior vice president of sales] said. (Laurie Berger, "Electronic Links to Corporate Intranets Loom Larger," Business Travel News, 26 Jan. 1998, 20.)

"Corporate customers are interested in making bookings through electronic means, such as intranets, to make sure that bookings are in line with travel policy and to integrate these bookings in MIS systems for reporting and supplier negotiations," [Rene Duchesne, general manager of Internet Travel System Inc.] said. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 26 Jan. 1998, 51.)

Job elimination and downsizing dropped to their lowest levels so far this decade, as major U.S. companies created twice as many jobs as they cut in the 12 months ending June 1997, according to the American Management Association's latest study of corporate hiring and firing practices at major U.S. firms. (Mary Ann McNulty, "Corporate Hiring on the Rise," Business Travel News, 10 Nov. 1997, 6.)

Hiring was weakest in corporate purchasing departments. (Mary Ann McNulty, "Corporate Hiring on the Rise," Business Travel News, 6.)

Actual "downsizing" defined as a net decrease in the workforce, dropped to 19 percent, from 28 percent in the previous period and an average of 30 percent in the five years from 1992 through 1996. (Mary Ann McNulty, "Corporate Hiring on the Rise," Business Travel News, 10 Nov. 1997, 6.)

"We're seeing the payoff after a decade of pain," said Eric Rolfe Greenberg, AMA's director of management studies. "The same forces that were costing jobs in earlier years, such as restructuring, reengineering and automation, are now creating jobs that demand high skill levels. The people going out the door don't have them; the people coming in do." (Mary Ann McNulty, "Corporate Hiring on the Rise," Business Travel News, 10 Nov. 1997, 6.)

[U.S. Office Products's] consolidation goals have been accelerated due to the latest round of commission cuts. "We see the cut as a tremendous window of opportunity for USOP to continue to be very aggressive in acquiring profitable, well-run companies. If anything, it presents more opportunity to move forward," [Ed Adams, president of Professional Travel Corp. and of USOP's corporate travel division] said. (Sarah Welt, "USOP Adds McGregor in Regional Hub Strategy," Business Travel News, 10 Nov. 1997, 7.)

Said Linda Oliver-Eckhardt, director of client management at McGregor, "We never wanted to be American Express, but to fight off the instability of the market, we needed to grow." (Sarah Welt, "USOP Adds McGregor in Regional Hub Strategy," Business Travel News, 10 Nov. 1997, 7.)

But [Randy Malin, TravelNet general manager] was confident that the move to desktop technology will come because the distribution system for corporate travel is "broken" and the commission cuts will make companies abandon the tradition profit-center philosophy and recognize that they should be the ones to manage the costs of purchasing travel and entertainment. (Jay Campbell, "Tech Vendors Still Optimistic, Despite Slow Start," Business Travel News, 10 Nov. 1997, 12.)

"Of our 175 customers in the queue, none want an intranet solution, although a year ago that's what most of them wanted. Now they want extranets," said [Mike Mulligan, senior vice president and general manger of American Express' corporate services interactive division]. (Jay Campbell, "Tech Vendors Still Optimistic, Despite Slow Start," Business Travel News, 10 Nov. 1997, 12.)

[Sabre's Terry Jones] said there are now only three main players in online unmanaged booking, whether for business or vacations, as a result of the online commission cuts. The cuts "changed this business. We have seen few new entrants since those cuts and now Expedia, Preview Travel and Travelocity are the only big players." (Jay Campbell, "Tech Vendors Still Optimistic, Despite Slow Start," Business Travel News, 10 Nov. 1997, 13.)

My seventh grade science teacher used to say that a species, confronted with a permanent change in its environment, had three choices: adapt, migrate, or die. We are a strong industry, We will adapt. (Susan Stowe, consultant with Caldwell Associates, "How to Adapt to the Commission Cuts," Business Travel News, 10 Nov. 1997, 15.)

For "simple point-to-point itineraries where you don't need the services of an intermediary," such a direct link saves the airline the cost of CRS booking fees, ARC processing fees, travel agency commissions and overrides -- all numbers that can be added up and placed squarely on the negotiating table between the travel manager and the preferred vendor, [Via World Network marketing vice president Kelly Renner] said. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

More than three-fifths of surveyed companies have undergone at least one round of job cuts in the 1990s, and 40 percent have cut jobs in three or more calendar years since 1990. The more frequent the job cuts, the survey found, the better the results in three key areas: worker productivity, operating profits, and shareholder value. (Mary Ann McNulty, "Corporate Hiring on the Rise," Business Travel News, 10 Nov. 1997, 59.)

Online booking system developers are impacted by American's cuts

This really represents a disincentive for corporations to go with self-booking products. (President of BTI Americas Ralph Manaker in Cheryl Rosen, "AA Imposes Online Fee," Business Travel News, 14 April 1997, 6.)

American's idea of partnership has always been a short-term play. (ITN co-founder Dan Whaley in Cheryl Rosen, "AA Imposes Online Fee," Business Travel News, 14 April 1997, 6.)

Corporate travel managers worry about the airline's online booking arrangements

They could entice you to select their booking system, and then, once you and your travelers are fully linked to BTS, they could put a cap on it anyway. (TI's Ralph Brown in Cheryl Rosen, "AA Imposes Online Fee," Business Travel News, 14 April 1997, 6.)

Microsoft is blamed for the current round of commission cuts

Microsoft created this problem in the first place by offering to undercut the traditional agency commission on Expedia. Now it's come full circle and bit Microsoft on the tail. (ITN co-founder Dan Whaley in Cheryl Rosen, "AA Imposes Online Fee," Business Travel News, 14 April 1997, 6.)

We did studies to look at how long it takes for someone to book a travel transaction from the start to getting a ticket in their hands, and we came up with 60 minutes. American Airlines and Sabre did a study of 400 companies and came up with roughly the same figure, 56.3 minutes. That same transaction with an Internet-booked ticket and an electronic ticket goes down to 18.3 minutes. All you have to do is figure out what it costs you per person to work those 18 minutes versus 56.3 minutes. (Bob Grant, director of corporate travel, Charles Schwab &Co., in "Cos. Embrace Intranets," Business Travel News, 14 April 1997, 38.)

For one client, General Electric, [Carlson Wagonlit is] doing it all, from travel through expense reporting. Our employees recently took over expense report processing previously handled by more than 100 GE employees. ("Carlson Pres Takes Stock of Americas," Business Travel News, 14 April 1997, 35.)

Many companies are finding a backlash against layoffs, including overwork and constant upheaval from their efforts to embrace new management models. It is said that failed efforts have been a result of decreasing the workforce without also revamping work patterns. (Hal F. Rosenbluth, president of Rosenbluth International, "Keep Focus on Service," Business Travel News, 14 Apr. 1997, 10.)

United joins the pack

Just days after American Airlines rocked the nascent online travel industry by announcing a $15 flat commission for tickets booked over the Internet, United Airlines played its own trump card -- matching American's flat-fee structure and lowering the commission even further to $10 per PNR. ... Providers in the online travel channel expressed concern that the cascading series of fees from the airlines -- now including Northwest, Continental, American and United, and, through a couple of online providers, Delta -- may well have the cumulative effect of killing the channel in its infancy. (Cheryl Rosen and Mary Ann McNulty, "UAL Cuts Online Commissions to $10," Business Travel News, 28 April 1997, 1.)

Beverly Bouchard, CTC and president of Traveling Inc., of Norwalk, Conn., said she had complained to the hotel manager about a $32 commission on a $700 booking for a Promus hotel. Bouchard said the manager told her he hoped the limit would not affect their relationship. " I said, 'Give me a break. Do you think I'm going to work for you for nothing?'" (Kate Rice, "Promus Limits Commissions," TTN, 28 April 1997, 4.)

Agencies not only have to worry about new online competition; they also have to beat competing traditional agencies to the online punch. ("Travel Agencies and the Internet: A Strategy for Survival," Smart Business, 28 April 1997, A1.)

Consider the Internet from the travel agent's perspective: Direct online booking threatens your reservation and ticketing business. Automated policy compliance grabs your backoffice work. Global access to data robs you of control and undermines your value to clients. ... Rising to that challenge is more than a question of growth for corporate travel agents in the age of the Internet. It's a matter of survival. ("Travel Agencies and the Internet: A Strategy for Survival," Smart Business, 28 April 1997, A1.)

"Prompt and accurate ticket delivery used to be [the core value proposition]. Now that goes over to the utility area -- high labor, low value. No corporate travel agency says 'I give better ticket delivery.' You don't differentiate yourself there." (Philp Wolf of PhoCusWright in "Travel Agencies and the Internet: A Strategy for Survival," Smart Business, 28 April 1997, A3.)

For those who are trying to engage in the corporate arena, anybody with less than $100 million in air sales is going to have a struggle. They just don't have the technology, the financial and the human resources and the deals in place with the suppliers to compete with the larger regional or mega agencies. If they couldn't restructure their arrangement with their clients on a fee basis, they're struggling because they effectively lost about 20 percent of their revenue. (Hal Rosenbluth in "Travel Agencies," Business Travel News. 26 May 1997, 14.)

What began as a 5 percent gap on commissions paid to agencies for online bookings by Northwest in July 1996 had by the spring of 1997 become a flat $15 fee from American, and then a flat $10 fee from United. Delta is expected to follow suit this month. But, in keeping with Sabre's strategy, each airline offered to negotiate commissions with preferred customers who agreed to tie in the use of a given CRS with a corporate airline discount. ("CRS Companies," Business Travel News. 26 May 1997, 69.)

Smart card applications ... promise to quickly supplant e-ticketing. (David Meyer, "A Very Good year," Business Travel News, 26 May 1997, 3.)

More than ever, the CRSs say, corporate travel buyers are dictating the technology through which they want their travel to be booked, rather than having the choice made by their agency. ("CRS Companies," Business Travel News. 26 May 1997, 69.)

Smaller agencies have to spend so much more money on automation. Since we develop all of our automation in-house, we don't have to go to an outside vendor. (Betta Karney, president of World Wide Travel in "Travel Agencies," Business Travel News, 26 May 1997, 14.)

World Wide Travel's Karney said her agency did $25 million in ticketless in 1996, up $15 million from 1995, and is saving $8 to $10 on each e-ticket. ("Travel Agencies," Business Travel News, 26 May 1997, 14.)

What does distribution mean? Someone buys the inventory and it's not the manufacturer who sets the price; the manufacturer sells it to the distributor and the distributor sets the price. (McCord Travel Management president Bruce Black in "Travel Agencies," Business Travel News, 26 May 1997, 14.)

Sabre is releasing Planet Sabre, its easy-to-use front end for travel agents, this month, making it the first CRS in Europe to offer such a Windows-based product. ("CRS Companies," Business Travel News. 26 May 1997, 69.)

The reality is that the agency relationships aren't the most important ones for customers. We recognize that these relationships are important to the agencies, but clients want strong relationships with card vendors. (Kim Layne, director of marketing, Necho Systems Corp., in Mary Ann McNulty, "Agencies Expand Their Expense Reporting Roles," Business Travel News, 9 June 1997, 13.)

Airlines are setting themselves up to work directly with the traveler, eliminating the need for agencies. (Musicland Group travel manager Ruth Levine, "Airlines Can't Replace Agencies," Business Travel News, 27 Oct. 1997, 12.)

After nearly three years of contention from corporate buyers, travel agencies and travelers, inside sources and hard data now say that electronic ticketing is finally getting its due.

The growing consensus is that electronic tickets are convenient and flexible, but an acquired taste. They are cheaper, and they do open the negotiating door. They are limited for now and for some applications, but they are no less than overwhelming in potential. (Jay Campbell, "E-Tix Winning Favor, usage," Business Travel News, 27 Oct. 1997, 1.)

The latest commission reduction will force travel managers to solidify relationships with key airlines, and rethink how and why they work with travel agencies. (John Heilner, "Cuts Recast Agency, Airline and Buyer Roles," Business Travel News, 27 Oct. 1997, 12.)

The recent reduction of commissions paid to [travel] agencies by airlines has again fueled the interest and need for corporate travel managers to benchmark their travel operations. When the commission cap was imposed in 1995, most corporate and agency financial relationships were generally converted to a management or transaction fee structure. Because of that, the financial focus has shifted to the expense side of the travel operation and the emergence of automated processing of travel requirements has become a factor. (Ralph D. Brown, "Benchmarks for Buyers Considering the Cuts," Business Travel News, 3 Nov. 1997, 10.)

At one of our large clients, we have found that airline fares selected through electronic booking were 18 percent less than through telephone booking. (Travel management consultant Ralph D. Brown, "Benchmarks for Buyers Considering the Cuts," Business Travel News, 3 Nov. 1997, 10.)

[Some travel managers] are looking to new industry automation to hold down the cost of on-sites by reducing the number of reservationists required. ... With no plans to move to a res center, the wholly owned subsidiary of Novartis [i.e., Ciba Vision Corp.] is actively looking at automated booking software and is "expecting a 30 to 40 percent gain in efficiency in processing reservations in two years time that will tie back to a reduction in headcount with our onsite," said Ron Sharer, head of corporate support services. (Sarah Welt, "Res Centers Rise as Rev. Falls," Business Travel News, 3 Nov. 1997, 30.)

The recent airline commission cut by the carriers means one thing for the business traveller -- higher costs. ...

However, does this latest cut mean that an overwhelming number of corporations are going to move away from using travel agents and make their own travel arrangements? Absolutely not.

The instruments that would allow corporations to book their own travel -- 800 numbers, direct-booking software, the Internet, etc. -- have been in place for years, yet an overwhelming number of corporations continue to use travel agent services.

Why is this? For the same reason that travel agents book such a high percentage of vacation travel -- it makes good financial sense. Corporate buyers recognize the exorbitant costs associated with booking travel themselves (limited options, unproductive hours spent on hold), and they've come to rely on their corporate travel agency to implement travel policies to save the company money, negotiate preferred supplier relationships and save time, and provide corporate reporting that tracks expenses and savings. (Mike Spinelli, president and CEO, American Society of Travel Agents, "Direct Supplier Links Won't Replace Agents," Business Travel News, 10 Nov. 1997, 14.)

Travel insider talk

Many travel tech cogniscenti agreed that the need for a central data repository is a major stumbling block. (Cheryl Rosen, "Buyers Look to Extranets to Cut Costs," Business Travel News, 10 Nov. 1997, 50.)

Topping the sweepstakes last year was Thomas F. Frist, Jr., chairman and chief executive of HCA-Hospital Corp. of America who brought in $127 million. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

In early November [1996], Michael D. Eisner of Walt Disney Co. realized a stunning $197 million gain on stock options. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)




What the Future may Hold

Predictions for the future Role of government Large-Scale Job Creation

Every investor dreams of beating the market. ("Dean Foust, "Talk about a Glitch in the System," Business Week, 9 Sept. 1991, 82.)

Topping the sweepstakes last year was Thomas F. Frist, Jr., chairman and chief executive of HCA-Hospital Corp. of America who brought in $127 million. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

In early November [1996], Michael D. Eisner of Walt Disney Co. realized a stunning $197 million gain on stock options. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

Corporate Loyalty

The Organization Man was a loyal, hard-working, white male who had given himself entirely over to his company. He avoided risk, wasn't terribly creative, and was quicker to take orders than to question authority. (John A. Byrne, "Is the Company Man Really a Goner?" Business Week, 26 Aug. 1991, 12.)

The Fall of Smokestack Industries

According to Time Magazine, a large portion of the layoffs from restructuring took place in manufacturing. The number of factory jobs hit a 28-year low in May of 1991. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.) From 1979 to 1986, total U.S. manufacturing employment declined from some 21 million jobs to 19.1 million. Time would note, as so many commentators did, that the layoffs increased productivity and so they were a mixed blessing. "Partly because of this slimming down, U.S. manufacturing productivity -- hourly output -- has risen by an average of 3.8% annually over the past five years, compared with 1.5% in the '70s." (Russell, 1987, 47.) Business Week gave the illustration of steel and auto jobs lost. A worrisome number of the unemployed remained jobless.

Those who have suffered most from the trends in U.S. employment are laid-off steel- and autoworkers, some of whom had been making more than $20 an hour in wages and benefits. While total manufacturing jobs have grown by 1.5 million since the pit of the recession, about 500,000 employees have never found other positions. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

The Rise of the Flat Firm

Mergers, acquisitions, and downsizing stripped away the layers of middle management. These trends were seen as altering traditional chains of command and resulting in flatter corporate organizations. (McDonald, 1991, 15.)

An executive search form argued that "whole levels of middle management have been wiped out and will not be replaced." (Harold Johnson, managing VP of Korn/Ferry International, an executive search firm in Brownstein, 1991, 29.)

Their vulnerability left the managers that remained wary. Said Fortune Magazine:

Like lieutenants in the army, these [middle managers] are the people who translate the generals' commands, squad by squad, into movement on the ground. But their demoralized state of mind today is not at all conducive to improving productivity or increasing quality -- let alone innovating. All too often, the people who used to be the brass' most reliable backers ... now seem to be more disenfranchised and cynical than the hourly folks. And because of their perception that the upper echelon has turned on the underlings, the white-collar blues won't go away anytime soon, economic recovery or no. (Fisher, 1991, 70.)

Senior management was not immune to downsizing. Business Week reported that typical job seekers at British employment agencies were 40-year-old middle- or senior-level managers. (Reimer, 1991, 44.) The trend was noticeable in the Eighties, when it was said that "high corporate rank has provided no immunity from the restructuring effort that has taken place so far."

'The efficiency problem,' Darman points out, 'is a white-collar problem even more than a blue-collar problem.' Between 1983 and 1987, some 600,000 to 1.2 million middle- and upper-level executives with annual salaries of $40,000 or more lost their jobs. An additional 200,000 to 300,000 such executives are expected to receive pink slips over the next two years." (Russell, 1987, 47.)

By the Nineties the idea that management was sheltered from the cost-cutter's axe was fading in the public mind.

For most of the past 50 years, Americans have seen a white-collar job as a buffer against the vicissitudes of the labor market. Factory workers might get laid off every time orders slumped, but managers and professionals knew that their skills were too valuable for such treatment. This belief has been badly shaken by the current recession, which most observers have perceived as having a distinctly white-collar cast. (Aaron Bernstein. 1991. "Who's Really Taking the Brunt of the Recession?" Business Week, October 21, 94.)

However, the path of the entrepreneur did not prove easy. A rise in bankruptcies was observed, as many newly-started companies proved shortlived. In Britain, for instance, "a staggering 23,161 British businesses collapsed in the first half of 1991, and 900 companies are going out of business each week." (Reimer, 1991, 45.)

"'Fear is rampant in the workplace," observed one commentator. (Fisher, 1991, 71.)

Corporate loyalty was seen as a casualty of the tear in the social contract that runaway downsizing represented. Said a University of Chicago professor business policy in the late Eighties:

The new culture is to keep your nose clean and your bags packed. The moral that people see around them is, if you fall in love with your company, you're going to get burned. (Rudolph, 1987, 48.)


Fall in Living Standard and Consumption

Real hardship began to surface and be noticed in the United States."I think we're entering a decade or more in which the standard of living is not going to grow." (Audrey Freedman, President of Manpower Plus in Dan Cray, "The Great American Layoffs," Time, July 20, 1992, 64.) Between 1973 and 1983 the median real income of a typical young family headed by a person ages 25 to 34 fell by 11.5%. In the 1970s, for the first time in history, the economic value of a college degree declined. An awful lot of physics majors found themselves driving cabs. (Evan Thomas, "Growing Pains at 40," Time, May 19, 1986, 29.) When adjusted for inflation, the average hourly wage of U.S. workers in 1992 stood 14% lower than in 1979. (Dan Cray, "The Great American Layoffs," Time, July 22, 1992, 64.) Stories of frightening poverty began to be reported. The NBC Nightly News, for instance, said on October 30, 1991 that "23 million, nearly one in 10, Americans were on food stamps."

Downsizing was seen as resulting in a consumption drop-off :

Debt-burdened consumers are staying out of stores. ... Shoppers have remained at home because they are uncertain about their jobs and the overall state of the economy. A survey has revealed that two thirds of Americans think the country is on the wrong track. The latest data showing a continued rise in claims for unemployment benefits have reinforced these negative feelings. (Susan Dentzer. 1991. "Uncooperative Patient," U.S. News & World Report, October 21, 62.)

The same trend was evident in Europe where "European companies are suddenly cutting workers at a furious pace." (Reimer, 1991, 44.) European unemployment was put at 10% in 1993 and rising. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.) Europe was said to be "plunging into Continent-wide recession." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.) The creation of a united European market had failed to reverse the trend of unemployment. Said Business Week:

"There was such hope for the single market," laments Alcatel's [Chairman Pierre] Suard. "Now, people see it's here, but unemployment continues to rise. It's extremely dangerous." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

The fall in consumer demand was much more evident to American market-watchers in Europe than it was in their own backyard:

This recession [in Europe] is unusually deep partly because Europe had made such a determined march toward global competitiveness. In their drive to create a single market by 1993, many European companies made remarkable progress. Auto manufacturers cut costs by 50% and more, dramatically closing the gap with the Japanese. Some steelmakers became the world's most efficient. Such moves and others cost Europe hundreds of thousands of jobs and depressed consumer demand. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Recession

The recession started in July, 1990. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Europe is now plunging into Continent-wide recession. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Evidence of Job Growth

If you still think the economy is jobless and recession-prone, it's time to wake up and smell the data. The invigorating aroma of the May employment report alone ought to be enough to change your mind.

U.S. businesses added 209,000 workers to their payrolls in May, following a 216,000 increase in April. The economy hasn't posted back-to-back job gains of that size in more than three years. .... The Labor Dept.'s annual revisions show that the economy generated 336,000 more jobs from April, 1992, to February, 1993, than previously reported.... In the aggregate, payroll employment has now recovered all of its recession losses. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

The bulk of the new slots have come from business, health, and personal services. Some argue that these are low-wage, dead-end jobs, but in May the average hourly wage in services stood at $10.81, not much below $11.72 in manufacturing. (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

Critics charge that many of the new service jobs pay far less and require fewer skills than the blue-collar occupations that have been dwindling. The result, they say, is that the number of middle-class workers is steadily shrinking. Asserts Harvard Economist Richard Freeman: "For the first time in American economic history, the shift is toward lower-wage industries." John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.

The only downer in the May employment report was continued evidence that manufacturers are still loath to expand their payrolls. Indeed, factories shed 39,000 workers last month on top of the 75,000 they let go in April and the 19,000 released in March. Manufacturers are the victims of two long-term trends: defense cuts and rising import penetration. [What about technological displacement of workers??] (James C. Cooper and Kathleen Madigan, "Suddenly, the Job Engine is Purring," Business Week, June 21, 1993, 29.)

Much of America's job growth is in the service sector. Workers performing every task from plumbing to neurosurgery have increased from 53% of the labor force in 1950 to 70% today. In the 1970s, the largest gain in total employment was made by secretaries, whose members rose by nearly 1 million. That was followed by a 556,000 increase in cashiers and the addition of 501,000 registered nurses. John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.

Recently it has become fashionable to engage in "services-bashing" -- that is, deploring the decline of the U.S. industrial sector and lamenting what one well-known industrialist labels "the McDonaldization of America." Tied to such complaints are reports of lagging productivity gains and lower wages in the service sector.

But consider these facts: in the past 20 years, 36 million net new jobs have been created in the U.S. - far more than in Japan and Western Europe combined. On balance, 9 out of 10 of these jobs have been in services. Of the more than 22 million women added to the employment rolls in the U.S. during this time, 33 out of 34 found a job in services. And the most rapidly growing job categories are in information-centered services, demanding high skills, for which wages are increasing from a lower base but at a faster rate than those in the manufacturing sector. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

The balance of employment is almost certain to continue shifting toward services. American manufacturers, with increasing productivity and a constant share of the country's output, will employ a decreasing proportion of the work force. At the same time, service industries, whose share of output as well as productivity is growing, will enlarge their portion of total employment. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

Given the inability of the industrial sector to provide sufficient jobs, particularly at a time when millions of women have elected to work outside the home, the continued ascendance of the service economy has, in fact, been of incalculable social as well as economic benefit. It indicates a real need to prepare larger proportions of our population for careers in services. That is as exciting a prospect in these times as the one that confronted aspiring manufacturers and workers at the outset of the Industrial Revolution. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

Service jobs frequently pay lower wages than manufacturing. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

More than 6.3 million people have found work during the recovery, and unemployment has tumbled from 10.7% to 7.5%. ... The U.S. has managed to generate a total of 13 million new jobs, or a 14% increase. Western Europe, by contrast, has lost some 3 million jobs during the same period, while Japan, for all its competitive might, has added 5.6 million positions for a 9% gain. Manfred Wegner, former chief economist of the European Community, calls it simply "the American miracle."

To be sure, joblessness remains a serious and painful U.S. blight. More than 8 million Americans are still out of work. Moreover, some critics charge that the American job surge, which has been highlighted by the creation of nearly 2 million new fast-food and other restaurant positions, is turning the U.S. into a nation of hamburger helpers at the expense of jobs in the basic industries. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 44.)

Downsizing after takeovers

"When a company is successfully taken over, its headquarters town becomes especially vulnerable. Blue Bell, the manufacturer of Wrangler jeans, shut down its Greensboro, N.C., headquarters after the company was acquired by VF Corp. That put 300 people out of work and meant the end of Blue Bell's strong support of Greensboro's arts and civic activities. Thirty miles to the west, Winston-Salem was deal a similar blow after R.J. Reynolds merged with Nabisco Brands in 1985. Last month RJR Nabisco announced it will move its corporate headquarters from Winston-Salem to Atlanta, taking along not only some 250 jobs but the considerable corporate prestige and financial largesse that Reynolds had showered on its home city for more than a century." ("Main Street Feels the Pinch," 1987, 49.)

Defence cuts

The DBP predicts that 814,228 defense-sector private jobs - 25% of such jobs, but less than 1% of total private employment - will disappear between fiscal 1990 and 1996. Total job cuts - including military, civilian, and private-sector positions - will peak in 1992, when defense spending is set to drop 10%. But even in that year the combined cuts will amount to only 0.3% of total U.S. employment as of 1990 and less than 1% of job rolls in the hardest-hit states - Virginia, Connecticut, Hawaii, California, Alaska - and in the District of Columbia. (Gene Koretz. 1991. "The Modest Effect of a Farewell to Armsmaking," Business Week, Sept. 16, 24.)

Another industry excperiencing job displacement is defense. But despite howls of pain from some affected regions, cutbacks in defense spending won't make much of a dent in U.S. employment or the overall economy, predicts the Defense Budget project, a Washington nonprofit research group.

Defense outlays have already fallen 22% in real terms in the past five years and could decline an additional 13% by 1996. As a result, says the group, some 2.8% of America's gross national product will shift from defense to nondefense output in that 10-year period. (Gene Koretz. 1991. "The Modest Effect of a Farewell to Armsmaking," Business Week, Sept. 16, 24.)

Technology revolutionizes the job market

Workers used to spend hours every day laboriously recording the status of thousands of craft items and plants [in a nursery company]. A year ago, they got handheld scanners to read universal product code labels [bar codes] on merchandise as they roam the aisles. If an item is out of stock, they can transmit orders to headquarters right on the spot. That has eliminated cumbersome paperwork and cut by 75% the time spent replenishing inventories. (Business Week, June 14, 1993, 64.)

New face of job market after technological impact

The reasons for the decline of our standard of living at a time when computerization would seem to be providing improved productivity, was not addressed. (David Kahn. 1991. "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 5.)

As companies large and small embrace new technologies and eliminate jobs, millions of workers are finding that their old careers are becoming obsolete. In just the past year, even as the [U.S.] economy grew by some 2.6%, more than 500,000 clerical and technical positions disappeared, probably forever. And better information systems are eliminating the need for lots of middle managers. It's no wonder that so many Americans are distressed: they see their paycheques lagging inflation, and they worry about joining their families and friends in the ranks of the unemployed. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

What happens to laid-off workers? How long are they likely to stay unemployed? What are their chances of finding similar work? How will their new pay compare with former earnings? Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 24.

Perhaps the most striking aspect of the latest [Bureau of Labor Statistics] survey results is the downward mobility of so many workers. The median nominal wage of reemployed workers declined by 11.8%. Over 40% of workers back at full-time jobs were earning less than they had on their old ones, and more than 25% suffered pay cuts of 20% or more. (Gene Koretz. 1991. "What Happens to the Jobless? Many Don't Bounce Back," Business Week, Sept. 16, 1991, 24.)

"There was such hope for the single market," laments Alcatel's [Chairman Pierre] Suard. "Now, people see it's here, but unemployment continues to rise. It's extremely dangerous." (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Surprisingly, few jobs are coming from high technology, which is often seen as the soul of the new U.S. economy. While advanced technical positions are growing fast, they still make up a small part of the total work force. For example, the number of computer systems analysts surged by 171% in the past decade, to lead all other occupations. Yet such highly educated professionals increased by only 127,000 during that period, or less than one-third the job gains recorded by cooks. In all, high-tech positions account for only about 13% of U.S. employment. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 45.)

The plight of the once highly paid but now displaced workers has spawned an exceptionally varied response. Some critics maintain that the heavily unionized employees have simply priced themselves out of jobs. Says Marc Bendick, senior research associate at Washington's Urban Institute: "The supergood industrial jobs, which pay superwages for relatively low skills, will disappear because of competitive pressures." To others, the laid-off employees are a national crisis. Says Chrysler Chairman Lee Iacocca: "To keep telling the people out of work in Pittsburgh or Detroit that they should become computer technicians or go into a service business is just a cruel hoax." John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.

Although the number of people in high-tech occupations will continue to grow, it will be dwarfed by jobs requiring little or no higher education. An additional 53,000 computer technicians will be needed by 1995, but business will be looking for 800,000 building custodians. Observed Stanford University Researchers Russell Rumberger and Henry Levin in a recent study: "Neither high-technology industries nor high-technology occupations will supply many new jobs during the next decade." John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employ,ment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May.

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ...

In fact, it seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs than there were when the recession started in July, 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals - excluding the technical and sales people whom the BLS [Bureau of Labor Statistics] lumps into its white-collar category - and you actually find 400,000 more such jobs today. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

A similar trend holds true for unemployment. The jobless rate for production workers hit 9% in September [1991], up from 7.1% at the start of the downturn. White-collar unemployment, which historically tends to be lower, started at 3.2% and reached 4% last month. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Information technology is revolutionizing business, but there's growing concern about workers paying the price with their jobs. ...

Large-Scale Job Creation

SMB: Now that we have stripped away the corporate fat, pruned, restructured, downsized, and rationalized our operations in the service of profit, millions of our population have been impoverished. The inhumanity of the automatic response to pare large numbers of workers from employment rolls is seldom discussed in business magazines.

The irony of the situation as far as profit-oriented companies are concerned is that those whom it has judged a non-productive factor -- i.e., excess labor -- are also consumers. This unproductive factor being now having been cut off from paying work, it has little or no money to consume and so consumption falls and profits fall with it. Companies that would not consider the inhumanity of mass layoffs stop to consider the impact when profits are affected.

SMB: Now that we have created the problem of mass unemployment, we must consider ways of resolving it. We must examine strategies of large-scale job creation. What principles can we deduce to guide us in creating large-scale employment? Who will supply the seed capital? How will they be organized and run? How can we keep them from simply giving new life to empirical materialism and predatory competition?

Employees must change

"Just as companies must adjust to changing times and tougher competitive conditions, so must their employees learn to do the same." ("Forced to Make," 1987, 48.)

Employee Response

"Says Paul Hirsch, professor of business policy at the University of Chicago Graduate School of Business: 'The new culture is to keep your nose clean and your bags packed. The moral that people see around them is, if you fall in love with your company, you're going to get burned.'" (Rudolph, 1987, 48.)

"Reluctantly abandoning its virtual guarantee of job security, [Eastman Kodak] trimmed away nearly 13,000 of its 129,000 employees last year as part of a program to save $500 million annually. Says Kodak Chairman Colby Chandler: 'The principal object is to make the company more agile, more competitive and more flexible.'" (Russell, 1987, 47.)

"Since 1980, [ITT Chairman Rand] Araskog has sold off more than 100 businesses, and last year he cut ITT's work force by 100,000, or 44%, and slashed headquarters staff from about 850 to 350." (Russell, 1987, 47.)

Unemployment [in Europe], already 10%, is rising as new restructurings and layoffs come on top of earlier ones made in anticipation of the single market. (Bill Javetski, "Europe's Economic Agony," Business Week, Feb. 15, 1993, 48.)

Outside Consultants

Companies are often using outside consultants, many of whom were laid off earlier, to lower their costs. (Michael J. Mandell and Christopher Farrell, "Jobs, Jobs, Jobs -- Eventually," Business Week, June 14, 1993, 72.)

Downsizing continues, but many companies aren't pleased with the results. A recent survey of some 1,800 companies by TPF&C, a Towers Perrin subsidiary, reports that 47% have reduced their work forces this year, and 20% say they anticipate further staff cuts next year. Yet another Towers Perrin survey of more than 300 major companies indicates that half are dissatisfied with their restructuring programs.

"Typically, management views layoffs as a quick fix for the bottom line," explains a Towers Perrin official. "But unless it cuts work at the same time as it cuts people, it inevitably adds costs for subcontractors, consultants, and other staff." In addition, many companies have been hit by higher-than-expected costs for severance pay, outplacement services, and legal fees. Gene Koretz. 1991. "Layoffs Arren't Working the Way They're Supposed to," Business Week, October 21, 23.

A shakedown is rocking the industry. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

"The buyout spree has created yet another powerful incentive for restructuring: fear of takeover. In many cases, corporations have fought off raiders only by buying up huge amounts of their own stock, and along the way accummulating huge amounts of debt. Once the threat has passed, firms have been forced to restructure to regain profitability precisely to keep their stock prices above the level at which they would attract bargain-hunting takeover sharks, who are likely to chop far more brutally and indiscriminately than the present managements." (Russell, 1987, 47.)

"The corporations that rid themselves of bureaucratic excess now stand to be among the healthiest entrants in the strenuous competition of the future." (Russell, 1987, 47.)

"Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: 'Restructuring will be a way of life for a long, long time.'" (Russell, 1987, 47.)

"When you talk about globalization, you're talking about resource allocation and the most efficient use of your resources. What more important resource is there than your human resources?" (Richard P. Bergeman, vice-president of human resources for CPC International Inc. in Brandt, 1991, 38.)

"Human capital." (Johnston, 1991, 115.)

"Valuable human assets." (Murray and Murray, 1986, 75.)

While middle managers make up only 5% to 8% of the work force, they account for 17% of all dismissals in the past three years. ... Research also shows that thousands of companies have downsized more than once since 1988. (Fisher, 1991, 71.)

White vs. blue collar workers

The continuing decline in manufacturing employment is particularly ominous, [Lacy H.] Hunt [Economist with HSBC Holdings PLC] believes, because this is the first time in the postwar period that it has failed to bounce back in the wake of a recession. ... In fact, it seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs than there were when the recession started in July, 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals - excluding the technical and sales people whom the BLS [Bureau of Labor Statistics] lumps into its white-collar category - and you actually find 400,000 more such jobs today. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

For most of the past 50 years, Americans have seen a white-collar job as a buffer against the vicissitudes of the labor market. Factory workers might get laid off every time orders slumped, but managers and professionals knew that their skills were too valuable for such treatment. This belief has been badly shaken by the current recession, which most observers have perceived as having a distinctly white-collar cast.

... "There were lots of well-publicized cuts of middle managers," says Tom Nardone, an economist at the Bureau of Labor Statistics (BLS). "But when you look at the figures, this recession hasn't hit white-collar workers harder than blue-collar ones." What's more, surveys by compensation consultants show that the hiring outlook for office workers during the next couple of months is better than it is for factory workers.

It seems clear that, as usual, blue-collar workers have borne the brunt of the downturn. Take employment. There are 1.2 million fewer blue-collar jobs today than there were when the recession started in July 1990 - a 3.8% decline. The number of desk jobs has fallen by 600,000 in the same period - a mere 0.8%. Narrow the focus to managers and professionals -- excluding the technical and sales people whom the BLS lumps into its white-collar category - -and you actually find 400,000 more such jobs today.

A similar trend holds true for unemployment. The jobless rate for production workers hit 9% in September, up from 7.1% at the start of the downturn. White-collar unemployment, which historically tends to be lower, started at 3.2% and reached 4% last month. "White-collar unemployment never went over 4.2% during the recession, while the blue-collar rate never went below 7%," says Erica L. Goshen, an economist at the Federal Reserve Bank of Cleveland. (Aaron Bernstein. 1991. "Who's Really Taking the Brunt of the Recession?" Business Week, October 21, 94.)

A similar trend holds true for unemployment. The jobless rate for production workers hit 9% in September [1991], up from 7.1% at the start of the downturn. White-collar unemployment, which historically tends to be lower, started at 3.2% and reached 4% last month. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

"Many argue that a leaner, meaner Europe Inc. is just what's needed to fend off such heavyweights as Japan's Nissan and Toyota in a single market. 'We'll need a big increase in volume before we add workers,' says Yves Blanc, director of finance at France's Valeo. For labor that's bad news." (Reimer, 1991, 45.)

Robert Reich, a Harvard professor of political economy and management, cautions against 'slash-and-burn management' that sacrifices employee loyalty and teamwork with an eye only to short-term profits. (Russell, 1987, 47.)

Corporation's attitude towards downsizing

"The corporations that rid themselves of bureaucratic excess now stand to be among the healthiest entrants in the strenuous competition of the future." (Russell, 1987, 47.)

Look closely, and you'll find that those who are willing to work hard in America can succeed and be as prosperous as anyone else in the world. It is not our economy that has eroded, it is our work ethic. (Kevin P. O'Flynn. 1991. "Twentysomethings: Who's to Blame for Their Problems? [Letter to the editor]" Business Week, Sept. 16, 9.)

The fate of the upturn has always been in the hands of the consumers. (James C. Cooper and Kathleen Madigan. 1991. "The Coup Showed Just How Fragile the Recovery Really Is," Business Week, September 2, 17.)

Pay scales

Upward revisions [in payroll gains] were concentrated in low-paying industries such as wholesale and retail trade, health services, and personal and business services. Employment levels in the higher-paying construction, finance, and manufacturing sectors were actually revised down. Indeed, the number of factory jobs hit a 28-year low in May. (Aaron Bernstein, "Who's Really Taking the Brunt of the Recession," Business Week, October 21, 1991, 94.)

Hiring prospects are turning up for office workers. Some 19% of large companies plan to increase their white-collar ranks by the end of 1991, while 8% plan to reduce them, according to a survey by the Bureau of National Affairs (BNA), a private company based in Washington, D.C. By contrast, only 13% intend to expand their production and service staffs, and 14% say they will cut them. "The employment situation has always been better for [white-collar] employees, and it still is," says Mike Reidy, BNA's director of surveys.

The story is similar when it comes to pay. White-collar wage hikes have averaged more than 4% a year since 1988, according to the BLS. Blue-collar wages have never made it to that level. Next year, desk-sitters at large companies, which tend to pay better than average, are likely to get raises of 5.1%, according to a Hewitt Associates survey of 1,700 large employers. These companies plan to give hourly workers 4.7% raises. That's a typical differential between the two groups. (Aaron Bernstein. 1991. "Who's Really Taking the Brunt of the Recession?" Business Week, October 21, 94.)

Overall, the U.S. is undergoing shifts in employment similar to those that have taken place regularly since the industrial revolution. When millions of jobs were lost on farms, new ones in industries such as steel and textiles grew up. The expansion of services and the shrinkage of some older occupations now are signs of the same natural growth and aging process. As long as American business can maintain its flexibility and innovative spirit, the number of Americans at work should continue to grow. (John Greenwald. 1984. "A Remarkable Job Machine," Business Week, June 25, 46.)

In the Eighties, downsizing was still be a matter that could bring a laugh:

It is known as downsizing, rationalizing, streamlining and, perhaps most commonly, restructuring. With a bow to the diet culture, some prefer to call it just plain slimming down. By whatever name it goes, a compulsion is sweeping through corporate America to bring about fundamental, long-lasting changes in the way it does business. (Russell, 1987.)

Your own personal and individual filter [is] that ground of being, that condition, that unconscious, unexamined structure of beliefs through which we perceive ... facts. (Hunger Project, The End of Starvation. San Francisco: Hunger Project, 1982, .)

"It is not the child's experiences which dictate his actions; it is the conclusions which he draws from his experiences." (Adler, 1956, 209.)

The world economy will continue its transformation to a knowledge paradigm, whether we like it or not. We will have to pay for the change; we can either pay for a controlled and successful transformation, or pay even more for a failed transformation, with its unemployment, gutted industries and lack of competitiveness. Change will come and we will choose: plan now, or ruin later. (Janice Moyer, 1991, 52.)

International competitiveness will be measured increasingly by the flexibility and efficiency with which services -- particularly those making intensive use of information -- can be provided. (James L. Heskett. 1987. "Thank Heaven for the Service Sector," Business Week, January 26, 22.)

Technological workers earn more pay

"Workers who use computers earn an average of 10% to 15% more than those who don't, even for the same job. Secretaries who use computers, for instance, enjoy a premium of up to 30%." (Business Week, June 14, 1993, 68.)

Robots are by definition general-purpose. What makes them different from other automated devices is that they're programmable. Simply by changing the program you can make them do different things. But they still have to be specialized in the sense that every task is unique. Usually a robot is adequate for 90 pecent of the tasks it may be required to do, but it has to be specialized for the remaining 10 percent. And this 10 percent represents a large number of narrow tasks that have to be specially designed for. (Raj Reddy, director of the Robotics Institute at Carnegie Mellon University in Gina Goldstein, "Raj Reddy: Shaping the Next Generation of Robots," Mechanical Engineering, June 1990, 39.)

Fifth, when all users had access to common databanks of information, reporting lines tended to blur. Allegiance shifted from hardcopy to softcopy. The master copy was often saved on tape or disk or located to a secure online location. Increasing numbers of reports were placed online. Whole ways of doing work, like having desk calendars, signing letters, or holding weekly staff meetings, were made optional features or eliminated by the computer.

"Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: 'Restructuring will be a way of life for a long, long time.'" (Russell, 1987, 47.)

INTRODUCTION: PHILOSOPHY

SMB: This is primarily a study of language, of how we create our reality by choosing to see things in the particular way that we do.

SMB: The language of these descriptions is the same as that of war, gambling, and sports. It is the language of life and death, winning and losing, victory and defeat. Implicit in it is the zero-sum conclusion that one's victory is purchased at the cost of the other's defeat.

"There is a philosophy behind the way of life of every individual and every relatively homogeneous group at any given point in their history." (Kluckhohn, 1942, page ?)

Hedonism of the Eighties

Expecting a favorable reception

Favorable climate of opinion

Expecting a warm welcome

Being met with approval

"It is not the child's experiences which dictate his actions; it is the conclusions which he draws from his experiences." (Adler, 1956, 209.)

We have set up a philosophy of life and drawn conclusions from our experience that have set in place conditions of adversarial, even predatory, competition. Now we must deal with what we have set up. Whether or not it was originally based on reality, it has now become our reality.

"It is quite an illusion to imagine that one adjusts to reality essentially without the use of language.... The fact of the matter is that the 'real world' is to a large extent unconsciously built up on the language habits of the group. ... We see and hear and otherwise experience very largely as we do because the language habits of our community predispose certain choices of interpretation." (Edward Sapir in Whorf, 1956, 134.)

"The cue to a certain line of behavior is often given by the analogies of the linguistic formula in which the situation is spoken of, and by which ... it is analyzed, classified, and allotted its place in [the] world." (Whorf, 1956, 137.)

SMB: If we should do unto others as we'd wish others to do unto us, what are we inviting others to do unto us by our speaking? To trounce us? Muscle in on our business? Stun us? Rout us?

SMB: Let us not lose sight of the fact that it IS a battlefield out there. But how did it get to BE that way? What value system or set of intentions have we put in place that fosters the growth of adversarial relations among countries? What mentality have we engendered in ourselves and others that we face each other as warring sides? The answer seems to be that, because we have thought aggressively, we have created an atmosphere of aggression. This article attempts to raise to view the template of that aggressive mentality.

We have made a mess. The "we" I mean is the world -- Americans and Japanese, South Americans and northern Europeans. At a time when international tensions have eased and world communism has fallen, world capitalism is going through its crisis. We have created commercial warfare which is proceeding with effects slightly less devastating than military warfare.

SMB: What I propose to examine here are the ideological reasons for the heating up of tensions -- specifically, the adversarial and competitive filter through which we see the initiatives of the global industrial community. This is a crisis of societies that know nothing higher than the materialistic pursuit of profit and pleasure.

PREDATORY COMPETITION

"Rivalry is a struggle that is not centred upon the real objects of the activity but upon outdoing a competitor. The attention is no longer directed toward providing for a family or toward owning goods that can be utilized or enjoyed, but toward outdistancing one's neighbours and owning more than anyone else. Everything else is lost sight of in the one great aim of victory. Rivalry does not, like competition, keep its eyes upon the original activity; whether making a basket or selling shoes, it creates an artificial situation: the game of showing that one can win out over others." (Benedict, 1934, 247.)

SMB: What we are seeing is predatory competition highlighted against the intensified world competition itself generated by breakthroughs in the area of computer-based technology. This article is not about the breakthroughs in technology nor intensified world competition per se; rather it is an examination of the ethic of predatory competition as seen against the constant of these two factors.

SMB: Our position appears to be "dominate and avoid being dominated." (The quote on not allowing technology to bleed through to our partners in a team alliance is a good case in point.) The sense of separate interests is characteristic of a materialist conception of life.

SMB: People will have to lavish on the human race the same compassion they have lavished on endangered species. They must shame corporate citizens into treating their workforces with concern and fairness in the same way that they have shamed seal harvesters into stopping their cruelty.

EMPIRICAL MATERIALISM

"One of the most common stereotypes about the United States is its materialism. Viewed in the context of the value system presented here, materialism is less a value per se than an optimistic assertion of two value premises (mastery over material nature and the perfectibility of man) that have operated in a favorable environment. What foreign observers may call materialism, with derogatory or envious innuendos, is to the American / a success that carries the moral connotation of "rightness" - of a system that proves itself or, as Americans would say with complete consistency, that 'works.'" (Du Bois, 1955, 12-3.)

"New concepts in physics have brought about a profound change in our world view; from the mechanistic conception of Descartes and Newton to a holistic and ecological view, a view which I have found to be similar to the view of mystics of all ages and traditions." (Capra, 1982, 15.)

SACRIFICING "HUMAN RESOURCES"

SMB: We are guilty of using people as means rather than as relating to them as ends. As a result we have dehumanized them -- reduced them to a lower-order reality such as animals or machines. The irony of the situation is that producers are also consumers. We have stripped away the producers and now they, in their other role as consumers, haven't the money to buy the products we manufacture. Thus, the producers and the consumers languish in the end.

"It is known as downsizing, rationalizing, streamlining and, perhaps most commonly, restructuring. With a bow to the diet culture, some prefer to call it just plain slimming down. By whatever name it goes, a compulsion is sweeping through corporate America to bring about fundamental, long-lasting changes in the way it does business." (Russell, 1987.)

"When you talk about globalization, you're talking about resource allocation and the most efficient use of your resources. What more important resource is there than your human resources?" (Richard P. Bergeman, vice-president of human resources for CPC International Inc. in Brandt, 1991, 38.)

"As companies discover the untapped resource of their people, they will find a gold mine of knowledge, ideas, and solutions." (Adair, 1988, 22.)

"Struggling General Motors, where profits declined 26% to $2.9 billion last year, has laid off 6.5% of its 578,000 workers since 1981 and announced plans to close twelve major plants by 1989. At the same time, GM will reduce the number of managers and other salaried workers by 25% by the fall of 1989. Similar moves are under way even at Ford, which earned $3 billion in 1986 to overtake GM as the most profitable American automaker. Ford plans to cut its salaried payroll by about 20% by 1990." (Russell, 1987,46.)

"IBM Corp. ... will trim its rolls by 10,000 employees." (Curran, 1990A, 57.)

"The corporations that rid themselves of bureaucratic excess now stand to be among the healthiest entrants in the strenuous competition of the future." (Russell, 1987, 47.)

"'Utilizing human resources.' That's what the theorists would call it. I call it managing people. It gives you an edge." (Auerbach, 1991, 39.)

"Says Paul Hirsch, professor of business policy at the University of Chicago Graduate School of Business: 'The new culture is to keep your nose clean and your bags packed. The moral that people see around them is, if you fall in love with your company, you're going to get burned.'" (Rudolph, 1987, 48.)

"Not everyone has decided to treat employees as disposable commodities." (Olive, 1991, 16.)

"Human capital." (Johnston, 1991, 124.)

"Valuable human assets." (Murray and Murray, 1986, 75.)

"Reluctantly abandoning its virtual guarantee of job security, [Eastman Kodak] trimmed away nearly 13,000 of its 129,000 employees last year as part of a program to save $500 million annually. Says Kodak Chairman Colby Chandler: 'The principal object is to make the company more agile, more competitive and more flexible.'" (Russell, 1987, 47.)

"High corporate rank has provided no immunity from the restructuring effort that has taken place so far. 'The efficiency problem,' Darman points out, 'is a white-collar problem even more than a blue-collar problem.' Between 1983 and 1987, some 600,000 to 1.2 million middle- and upper-level executives with annual salaries of $40,000 or more lost their jobs. An additional 200,000 to 300,000 such executives are expected to receive pink slips over the next two years." (Russell, 1987, 47.)

"A large portion of the layoffs from restructuring have taken place in manufacturing. From 1979 to 1986, total U.S. manufacturing employment declined from some 21 million jobs to 19.1 million. But partly because of this slimming down, U.S. manufacturing productivity -- hourly output -- has risen by an average of 3.8% annually over the past five years, compared with 1.5% in the '70s." (Russell, 1987, 47.)

"Says Alfred Rappaport, an accounting professor at Northwestern University's Kellogg Graduate School of Management: 'Restructuring will be a way of life for a long, long time.'" (Russell, 1987, 47.)

"The buyout spree has created yet another powerful incentive for restructuring: fear of takeover. In many cases, corporations have fought off raiders only by buying up huge amounts of their own stock, and along the way accummulating huge amounts of debt. Once the threat has passed, firms have been forced to restructure to regain profitability precisely to keep their stock prices above the level at which they would attract bargain-hunting takeover sharks, who are likely to chop far more brutally and indiscriminately than the present managements." (Russell, 1987, 47.)

"Since 1980, [ITT Chairman Rand] Araskog has sold off more than 100 businesses, and last year he cut ITT's work force by 100,000, or 44%, and slashed headquarters staff from about 850 to 350." (Russell, 1987, 47.)

"[Control Data] cuts its payroll from 54,000 at the end of 1984 to 34,000 in 1986." (Koepp, 1987, 50.)

"When a company is successfully taken over, its headquarters town becomes especially vulnerable. Blue Bell, the manufacturer of Wrangler jeans, shut down its Greensboro, N.C., headquarters after the company was acquired by VF Corp. That put 300 people out of work and meant the end of Blue Bell's strong support of Greensboro's arts and civic activities. Thirty miles to the west, Winston-Salem was deal a similar blow after R.J. Reynolds merged with Nabisco Brands in 1985. Last month RJR Nabisco announced it will move its corporate headquarters from Winston-Salem to Atlanta, taking along not only some 250 jobs but the considerable corporate prestige and financial largesse that Reynolds had showered on its home city for more than a century." ("Main Street Feels the Pinch," 1987, 49.)

GLOBALIZATION

"All information about the global market can be a source of competitive advantage." (De Wilde, 1991, 44.)

"Globalization and innovation are two sides of the same coin." (De Wilde, 1991, 45.)

"The time has come for an integrated effort to ensure that Americans will have the management and cross-cultural skills necessary to compete on a global basis." (Rhinesmith, 1991, 27.)

THE COMPETITIVE STRUGGLE

"The increasing power of work stations and PCs has those two classes eating into functions traditionally served by minis and sometimes mainframes." (Curran, 1990A, 58.)

"'Our U.S. education has taught us that there was no such thing as a free lunch,' says 42-year-old Marcos Fonseca, Brazil's national planning secretary (Yale '78)." (Katel, 1990, 58.

"Wall Street, which is still hunting for undervalued breakup candidates, is giving [GTE CEO Theodore F.] Brophy no respite. Despite a protective thicket of regulators, asset-rich and underleveraged phone companies such as GTE are no longer immune." ("Can GTE Keep Foiling the Raiders," 1987, 100.)

"Cost accounting is enemy number 1 of production." (Eliyahu M. Goldratt in Tatikonda, 1988, 1.)

THE AMERICAN DREAM

SMB: The American dream is to rise from rags to riches, to become a millionaire through one's own efforts, and to be welcomed and accepted into the circle of millionaires.

"Franchise operators, many of them Asian and Latin-American immigrants, can become millionaires. Says Dunkin' Donuts Chairman Robert Rosenberg: "Today we are the way into the middle class and the American dream." Greenwald, 1984, 44.)

"The Sa family of Milpitas, Calif., were once prosperous members of the Chinese middle class in Vietnam. They had to leave that war-torn country, but now, they're living the American dream. The Sas just bought a $310,000 home for their extended family of elderly parents, 30-year-old son Patrick and his wife, 26-year-old daughter, and a grandson. With a combined income of $120,000, the Sas own three cars, four televisions, four videocassette recorders, and $6,000 in stereo equipment." (Shao, 1991, 54.)


"Executives and academics agree .. that most companies have no choice but to shape up." ("Rebuilding to survive," 1987, 47.)

ZERO-SUM CONCEPTIONS OF BUSINESS TRANSACTIONS

"If there's more than one company in your business, somebody is winning and somebody is losing, just like in the NBA. Somebody's got a bigger share of the market, somebody is making more money, somebody is beating someone else." (Auerbach, 1991, 30.)

"This is the heart of our fundamental problem. ... Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. A zero-sum game is any game where the losses exactly equal the winnings. All sporting events are zero-sum games. For every winner there is a loser, and winners can only exist if losers exist. What the winning gambler wins, the losing gambler must lose." (Thurow, 1981, 11.)

A COMPETITIVE EDGE

"I don't care if you're selling baseball tickets or shoes, a competitive edge is the name of the game today." (Auerbach, 1991, 29.)

"The competitive edge is a state of mind where you're always trying to outsmart the other guy." (Auerbach, 1991, 34.)

"This is the heart of our fundamental problem. ... Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. A zero-sum game is any game where the losses exactly equal the winnings. All sporting events are zero-sum games. For every winner there is a loser, and winners can only exist if losers exist. What the winning gambler wins, the losing gambler must lose." (Thurow, 1981, 11.)

"Some experts fear that the Japanese ability to organize their research into a program with strong commercial goals could give them the edge in moving the [superconductor] research out of the laboratory.

At the moment, declaring a winner in the superconductivity race is premature. ... 'I wouldn't call what they have done ominous, but it certainly is a sign of intensifying aggressiveness,' says Roland W. Schmitt, General Electric Co.'s chief scientist and chairman of the National Research Board. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

ETHICS

"If you play within the rules, the odds are good that you'll win your fair share of the time. But if you know how to turn the rules to your own advantage, you'll do better than that." (Auerbach, 1991, 32.)

THE RIGHT STUFF: A WINNING ATTITUDE

"A winning attitude." (Auerbach, 1991, 38.)

"The Psychology of Winning." (Auerbach, 1991, 47.)

Dr. Robert Haas. Eat to Win. The Sports Nutrition Bible.

"A player - or employee - who gives his or her all, who is willing to pay whatever price it takes to succeed, is a winner regardless of who wins the game or what the standings are at the end of the year, or whether a particular project succeeds or not.

"It's a lot more fun when you're winning. The feelings are all positive - excitement, stimulation, challenge, reward, delight. motivation, and anticipation. The feelings can be negative when you're losing - stress, anger, procrastination, rejection, and resentment. I say 'can' because they don't have to be. You can learn a lot from losing." (Auerbach, 1991, 47.)

"The guerilla marketing attack is not just an exercise. It's a real battle, and there are winners and losers. Now you know the personality of the winners." (Levinson, 1989, 38?)

FREE ENTERPRISE, LAISSEZ-FAIRE CAPITALISM, AND RUGGED INDIVIDUALISM

"A free market for corporate control is basic to capitalism, but even the most fundamental principles have their limits. Honoring the First Amendment does not have to extend to child pornography.

"Determining where the line should be drawn requires a close look at the results of those deals built on creative leverage. Cold objectivity is essential here. Suppress your horror at down-home hardship -- the abrupt layoffs, the padlocking of the sole factory in a company town. Often the M&A wave was not the villain. Intensifying competition, which brought about the need to consolidate production and cut overhead, might have doomed the factory anyway." (Faltermayer, 1991, 60.)

"Superconductivity is likely to be a severe test of the highly individualistic American system. Even as basic findings are still pouring out of the laboratories, the stark reality of the competitive marketplace looms. And Ionson's embryonic consortium is no match for MITI's directed Japanese effort. In this case, the U.S. may have to consider imitating Japan for a change." ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

STRATEGIZING

"The word 'strategy' ... used to mean a damn good idea for knocking the socks off the competition." (Peters and Waterman, 1982, 31.)

SMB: Another phrase for predatory competition: rugged individualism.

SMB: A term to describe the right stuff: aggressiveness, boldness.

"Aggressive management." (Mackay, 1988, 8.)

"The reason we lost in the automobile industry is that there are only three manufacturers. By comparison, the Japanese have 14 very competitive companies slashing one another's throat for market share. Each has to be excellent or perish in the cutthroat competition of the free market. Ditto in semiconductors." (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84-6.)

"Aggression and the need to excel are looking for new ways to manifest themselves, and business, with its armies of functionaries, its prominent adversaries, its highly visible battlefields, is the perfect fit." (Cohen, 1973, 8.)

HISTORY

"Why, then, you may ask, was the narrow definition of rationality, the 'machines-without-damnable-human-error' view, apparently adequate for so long? Why was it equal to the task of churning out unparalleled productivity gains, especially after World War II? In part, things were simpler then. The pent-up demand for products after World War II, the absence of tough international competitors, a post-depression work force that felt lucky to have a job at all, and the 'high' of being an American worker turning out the best and brightest of tailfins for a tailfin-hungry world were all factors." (Peters and Waterman, 1982, 32.)

ROLE OF MARKETING

"The purpose of marketing is to create a desire to buy, to sell products and services on a repeat basis." (Levinson, 1989, 25.)

"A key part of its strategy. ... The Lotus threat is based on the success of.... Lotus is using the same marketing tactics that worked at home.... To fight back, Microsoft has...." ("Will Lotus Overrun Microsoft's Japanese Garden?" 1987, 76.)

"Billboard magazine charts the progress of hot-selling software just the way it does that of Michael Jackson records.

Indeed, the software field has taken on many of the characteristics of the pop-music business. If a new product flops, manufacturers can quickly go from boom to bust. Programmers, the people who write software, can find themselves millionaires at 20 but has-beens at 30. So-called pirates are stealing millions of dollars' worth of programs by copying them illegally.

Manufacturers of popular software are becoming industry superstars." ("The Wizard Inside the Machines," 1984, 71.)

ROLE OF RESEARCH

"Guerilla marketing uses as much science as possible." (Levinson, 1989, 41.)

CHANGE OR DIE

"'The electronics market is chaotic and subject to rapid change,' says Joe Lassiter, vice president of assembly, test, and electronic design automation at Tetradyne Inc. in Boston. In such an environment, he says, 'suppliers must be agile enough' to turn on a dime and exploit new pockets of growth." (Damian, 1991, 50.)

"The 1990s will be the first decade of true global competition and global economic warfare.... Tremendous change -- hyperchange -- is the only certainty." (Rock, 1990, 71.)

"The 1990s will be a time of enormous change in technology, products, supplier-customer relationships, and the global political economy. The one common denominator to these changes is that they will all be played in fast forward. The winners will be those who can cope with, and adapt to, such rapid change." (Corrigan, 1990, 70.)

"Rapidly shifting consumer tastes and increased global competition necessitate short product design cycles and responsive manufacturing facilities; economies of scope replace economies of scale." (Warner, 1987, 55.)

"Competing in time is a new idea that is changing the practice of management in profound ways.

"In the 1990s, 'time to market' will be the clarion call that drives the electronics industry." (Corrigan, 1990, 68.)

"Established firms want to move faster. They want to improve mainstream business performance, but they also want to shift into newstreams quickly, to speed up cycle time -- the time it takes to implement and commercialize new technologies." (Bachmann, 1990, 312.)

"The firm that is first to market often can command premium pricing because of its de facto monopoly. Early entrants are able to achieve volume break points in purchasing and production sooner than laggards, and they gain market share." (Bachmmann, 1990, 312.)

"What will the 1990s bring? Anderson sees it as an intensely competitive decade with 'time to market' as the battle cry. ... 'The battleground will be time to market -- the ability to take continuing advances in technology and respond quickly with them in a worldwide competitive situation. This will be the big differentiator.'" (Weber, "Battle Cry of the '90s," 1990, 80.)

Foster. Innovation. The Attacker's Advantage.

"Technology has eliminated many of the jobs our fathers had, and it may eliminate ours. ... Companies and managers, countries and their peoples face an increasing task of self-renewal - increasing because the pace of technological change continues to increase. We must all become better innovators as a result - inventing new products and reinventing our own skills and jobs as well." (Waterman in Foster, 1986, 15.)

"The world economy will continue its transformation to a knowledge paradigm, whether we like it or not. We will have to pay for the change; we can either pay for a controlled and successful transformation, or pay even more for a failed transformation, with its unemployment, gutted industries and lack of competitiveness. Change will come and we will choose: plan now, or ruin later." (Janice Moyer, 1991, 52.)

"I don't think there's any choice [but for the U.S. to have an industrial policy]. We have to match the competition. And we'd better get at it soon, because we haven't got a lot of time before the comparative energy of our trading partners becomes impossible to match. We need an industrial strategy." (Charles E. Spock, President and CEO of National Semiconductors in Weber, 1990B, 56.)

"In the world of technology to cling to outmoded methods of manufacture, old product lines, old markets, or old attitudes among management and workers is a prescription for suicide." (Sir Ieuan Maddock, 1982, cited in Foster, 1986, 25.)

"It's my feeling that as much as 80 percent of all manufacturing industries and a large portion of all service industries will see major technological changes before the year 2000. We are living in an age of discontinuity, and an age in which the risk to industry has never been greater." (Foster, 1986, ?)

"When the youthful attacker is strong he is quite prepared for battle by virtue of success and training in market niches. The defender, lulled by the security of strong economic performance for a long time and by conventional management wisdom that encourages him to stay the course, and buoyed by faith in evolutionary change, finds it's too late to respond. The final battle is swift and the leader loses. His attempts to defend his employees and shareholders fail. Doomed by doing too little, too late." (Foster, 1986, 37.)

PREDATORY COMPETITION

"You are surrounded. All around you are enemies vying for the same bounty [i.e., zero sum]. They're out to get your customers and your prospects, the good and honest people who ought to be buying what you're selling. These enemies are disguised as owners of small and medium-sized businesses.

These enemies thrive on competition. They're out to get you and get you good. ... Your enemies mean business, your business, your profits." (Levinson, Jay Conrad. Guerilla Marketing Attack. Strategies, Tactics, and Weapons for Winning Big Profits for your Small Business. 1989, 1.)

"No one government agency coordinates U.S. attempts to exploit the new [superconductivity] science." ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

At the Vick School of Applied Merchandising: "It was a gladiators' school we were in. Selling may be no less competitive now, but in the Vick program, strife was honored far more openly than today's climate would permit. Combat was the ideal - combat with the dealer, combat with the 'chiseling competitors,' and combat with each other. There was some talk about "the team," but it was highly abstract. Our success depended entirely on beating our fellow students, and while we got along when we met for occasional sales meetings the camaraderie was quite extracurricular.

"Slowly, as our sales-to-calls ratios crept up, we gained in rapacity. Somewhere along the line, by accident or skill, each of us finally manipulated a person into doing what we wanted him to do. Innocence was lost...." (Whyte, ?, 47.)

We look to "capture a dominant share" of the marketplace.

"[Bausch & Lomb] revamped its R&D operation, pushed into the extended-wear market, and managed to capture a dominant share." ("Bausch & Lomb is Correcting its Vision of Research," 1987, 91.)

"It's not going to be a picnic, but it will result in success." (Levinson, 1989, viii.)

"The marketing battlefield." (Levinson, 1989, viii.)

"To all ... the many unnamed heroes and heroines of marketing wars..., I ... urge you onward to victory." (Levinson, 1989, viii.)

"If you've got the personality of a successful guerilla marketer, you're already champing at the bit to unleash some of your newfound attack power." (Levinson, 1989, 16.)

"The guerilla marketing attack is a sustained attack. Once started, you never stop attacking. You may vary your weapons, adding some, subtracting others, polishing others." (Levinson, 1989, 38.)

Harvey Mackay. Swim with the Sharks Without Being Eaten Alive. Outsell, Outmanage, Outmotivate, & Outnegotiate Your Competition.

"Companies have used these insights either implicitly or explicitly to get the jump on the competition." (Foster, ?, 37.)

"Other marketplace battles [are] shaping up." (Foster, ?, 39.)

"This is an account of [the] education [of a class of 94 MBA students] to become lords over a new kind of army in a new kind of warfare, ready to take over from the military who have perfected their technology to the point where its use is guaranteed to leave nothing worth using it for. But since men will continue to be ambitious; since they will still want to be, they don't know what, except different, they will go on fighting for those things of which there aren't enough to go around -- money, love, land, praise, power and perquisites." (Cohen, 1973, 8.)

"World War III is going to be fought on the shelves of your neighbourhood shopping center, and the Harvard Business School is a sneak preview of it. How its generals are prepared. The weapons and tactics they learn to use. How, fighting against each other, against humiliation and delusions of grandeur, they run each other down, yet somehow, desperately at times, seek to maintain at least the appearance of friendship." (Cohen, 1973, 8.)

"The Harvard Business School's blind faith in competition alienates its students from one another, driving them to the destructive selfishness, the "rugged individualism" that, for too long, has been mistaken for a mainspring of progress." (Cohen, 1973, 8.)

"If the heroes of this book won't be your competition, one may very well end up as your boss." (Cohen, 1973, 9.)

"The government should get out of the electronics industry. Charles Darwin and Adam Smith are what's required to make winners and losers. It is not raw materials, human beings, education, or government support that produces a healthy industry. It is unrestricted competition." (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84.)

"The cola wars." (Visa ad in Business Week, October 27, 1986, 82.)

"JIT is a whole-company philosophy for long-run growth, survival and excellence in the face of worldwide competition." (Heard, 1987, 50.)

"Robert Reich, a Harvard professor of political economy and management, cautions against 'slash-and-burn management' that sacrifices employee loyalty and teamwork with an eye only to short-term profits." (Russell, 1987, 47.)

"'American companies must quickly address the perception of their product quality in Eastern Europe or risk losing ground to European or Japanese competitors.'" (? in Bachmann, 1990, 310.)

"The Battle for Europe," Business Week, June 3, 1991, cover.

"The world's largest market is up for grabs. While the Europeans and Americans are losing ground, the Japanese are coming on strong." ("The Battle for Europe," Business Week, June 3, 1991, cover.)

"Edith Cresson, France's new Prime Minister, leads the backlash against Japan." ("The Battle for Europe," Business Week, June 3, 1991, cover.)

"With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc." (Business Week, June 3, 1991, 2.)

"[JIT] is the strategy our competitors have used successfully and will continue to use to put us out of business unless we adopt it also. Though our automative, appliance, electronics and other businesses have been sandbagged by JIT users, we are pulling away from the brink and beginning to regain lost ground through our own JIT strategies." (Myers, 1987, 30.)

"JIT offers the last chance for many organizations to survive and compete in the world market." (Myers, 1987, 38.)

"JIT is our key to economic survival." (Myers, 1987, 30.)

"If management really wants to be around in the nineties, something has to be done. We no longer are just competing with the company down the street. Today, the name of the game is global competition. Survival is what many businesses are facing. MRPII and JIT techniques are tools which can greatly enhance our chance to be around in 1990." (Proud, 1987, 81.)

"Every day around the world, corporations do battle." (Nussbaum, 1991, 62.)

"'The Japanese have a strategy of world conquest,'" [France's Edith Cresson] says. 'They have finished their job in the U.S. Now they're about to devour Europe.'" (Toy and Levine, 1991, 44.)

"Europe's fearsome fortress is beginning to look like Swiss cheese." (Toy and Levine, 1991, 44.)

"[Harley-Davidson Chairman Vaughn] Beals foresees a major shakeup in America coming soon -- one in which only the strongest, best prepared companies will survive." (Willis, 1986, 22.)

"The manufacturing industries in North America are facing an incredible challenge from foreign competitors. These competitors are known for their ability to produce high quality, low cost products. Some products, such as televisions, steel and vdeo cassette recorders -- have already been lost to this competition. Others such as automobiles and semiconductors have felt a serious impact from foreign competition.

Industries such as food processing and telecommunications are only now beginning to see this foreign competition." (Costanza, 1988, 38.)

"Today's manufacturing market is a truly world-wide market where only the world class manufacturers will survive. ... To achieve the dramatic results needed for world class competition, dramatic changes are needed in manufacturing philosophies and techniques." (Costanza, 1988, 38.)

"The disagreements between the people who promote MRP II (Material Resource Planning) and the people who promote JIT (Just-in-Time) has almost become a holy war. The proponents of each side of the MRP-JIT war are declaring the other to be a loss to the true faith. However, when the smoke clears and the over used buzz words are quited there is one common goal that both have, and that is improving the operations of their company." (Wells, 1988, 39.)

"General Electric came under attack by the Japanese in the 70's on a broad front -- from steam turbines to TV's. Unlike many of its American competitors, GE responded early to the Pacific Basin manufacturing invasion." (Andrew, 1987, 3.)

"The competition is getting aggressive." (Costanza, 1988, 40.)

"Clearly, then, there is enormous potential for spectacular industry-wide improvement through the quality movement. But it would be a mistake to conclude that the battle is won, the wildly destructive export tide turned. U.S. firms, it should be noted, are still for the most part playing catch-up. The Japanese, relentless competitors, are not sitting still as U.S. industry accomplishes long-overdue reforms." (Alster, 1987, 64.)

"The rise to power and dominance of world markets by Pacific Basin firms in industry after industry has been both swift and relentless. In particular, the prominence of Japanese manufacturing productivity has been nothing less than awesome. Mut many major Western world manufacturing companies are not backing away from this competition. In point of fact, several major multi-nationals, some U.S. based, others European, have successfully stepped up their efforts for profitable survival in the productivity battle." (Andrew, 1987, 50.)

"Unless the U.S. acts quickly, [the Eastern European] market will be taken by Germany and Japan." (Rock, 1990, 71.)

"Moody's expects Wall Street in the 1990s to be marked by 'rapacious competition' that will lead to greater consolidation of the industry.

"As a result, ... a number of firms that are not prepared for the global competition of the next decade are likely to be driven into mergers, undergo big realignments or fail.

"The changes will bring with them a good deal of pain, the report said." (Eichenwald, 1990, C8.)

"The consumer industry ... we lost a long time ago. ... There are a number of people predicting that sometime in the 1991-92 time frame, our leadership position will shift to the Japanese specifically in computers; they will have a larger share of the world market than the U.S. Now that really bothers me. I think that this area is so critical to our effectiveness as a developed country, so critical to the health of our entire industrial base." (Charles E. Spock, president and CEO of National Semiconductors in Weber, 1990B, 56.)

"Having softened up the U.S. semiconductor industry by sapping its profits with low-ball pricing, Japan's electronics giants are moving in for the kill. That's the alarmist view of the proposed takeover of Fairchild Semiconductor Corp. by Fujitsu Ltd." (Brandt, "Japan Buys," 1986, 45.)

"A global firm which can shift cash flows from several countries to competitive activities in a given country may be able to underprice a multidomestic competitor, gain market share thereby, and, possibly, even drive a well-established but single-country oriented firm out of its market niche altogether. How does a multidomestic or multinational firm anticipate such competitive pressures and make appropriate responses before its cash and investment potentials are eroded? The answer often is, the firm must itself 'globalize' to survive. This is a key reason why firms desire to expand their strategic perceptions and to become 'more global.'" (Spivey and Thomas, 1990, 88-9.)

"The goal is to maximize the effectiveness of intended skills transfers while minimizing unintended transfers. In areas where the firm wishes to prevent skills from bleeding through to its partner, it must be able to build barriers to encroachment. The dilemma in competitive collaboration is to share enough of one's skills to create external advantage, while at the same time preventing a once-and-for-all transfer of vital skills that would leave one at a disadvantage within then partnership." (Hamel and Prahalad, 10.)

"If we can develop corporations that are consumer-driven, quality-focused, and globally effective, we will have gone a long way toward restoring America's competitiveness and ensuring our continued prosperity into the 21st century." (Rhinesmith, 1991, 29.)

"Says Tatsuo Takahashi, general manager of Toyota's Europe division, 'everyone is making good cars and cutting profit margins. Competition around the world has become fiercer.'" ("Cough and Splutter," 1991, 43.)

"Merely being competitive is not enough in today's global markets. Rather, [a firm's] long-term success will depend upon [its] domination of markets.

"The term competitive means a condition of parity or equality. ... In business as in sports, dominance increases the predictability of winning, whereas parity only increases competition." (Boznak, n.d., 207.)

"Olivetti ... makes AT&T's entry in the IBM-compatible personal computer wars." ("AT&T Plugs In," 1986, 44.)

"If it takes money to make money, then corporate America is heading for the poorhouse. At a time when Japan and West Germany are pumping record sums into new factories and state-of-the-art equipment, U.S. industries intend to scale back dramatically on capital spending. While plunging profits leave managers little choice, their actions threaten to erode the nation's future competitiveness, perhaps permanently." ("Lean Times," 1989, 72.)

"Flint, Mich. (pop. 144,000), some 50 miles north of Detroit, is a casualty of the foreign competition encircling American automakers." ("Main Street," 1989, 49.)

"Forced upon business by unprecedented global competition and financial turbulence, the change is so swift and powerful [?] that it is churning across the business landscape with the force of an army of bulldozers. American companies have started the huge task of rebuilding themselves from the ground up, erecting a sleep new operating architecture to replace the unwieldy processes of the past. ... Their aim: to produce streamlined, combative concerns that can withstand the frenetic, competitive pace of the late '80s." (Russell, 1987,46.)

SMB: Cutthroat competition.

"Global Gladiators: Battling Japan and Germany," USN&WR, October 28, 1991, 74.

"Many industry figures saw the collapse [of U.S. Memories] as a symbol of American short-sightedness. 'It marks the historical failure of laissez faire as a policy for continuing American technological leadership,' says John Stern, a lobbyist for the American Electronics Association in Tokyo. The only winners will be the Japanese semiconductor companies, which will tighten their grip on the market." (Schwartz and Powell, 1990, 54.)

Schwartz, John and Bill Powell. 1990. "Taking our Chips off the Table. U.S. Memories' Demise can only Help the Japanese," Newsweek, January 29, 54. (Zero-sum thinking.)

"In the age of the lean, mean organization, using technology may be the only way to succeed." (Duffy, 1989, 99.)

"Although it's only a game, it could help salvage America's battered reputation in high technology." (Sana, 1986,130.)

"Some analysts regard the twin SystemView and Polycenter announcements as more than coincidence, with DEC anxious to keep IBM from capturing the market before DEC is ready to deliver as full suite of products." (Jenkins, 1991, 45.)

"The export-control and antitrust laws must be liberalized, or our global competitors will capture the new and emerging markets, as well as keep U.S. companies from combining to fund billion-dollar investments that cannot be funded by our now smaller electronics companies. Partnering must be encouraged.

"The combination of industry and government can compete in this global war. We are at a crossroads, and it will take both of us to survive." (Rock, 1990, 75.)

"Because making chips is already highly capital-intensive -- and grows so more each year -- survival depends on having access to lots of cash." (Brandt, 1986, 45.)

Xxxxxxxxxx�

RULES OF THE ROAD

"Match the competition." (Charles E. Spock, Pres. and CEO of National Semiconductors in Weber, 1990B, 56.)

"Get the jump on the competition." (Foster, 1986, 37.)

"[Knock] the socks off the competition." (Peters and Waterman, 1982, 31.)

"[What] produces a healthy industry ... is unrestricted competition." (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84.)

"A competitive edge is the name of the game today." (Auerbach, 1991, 29.)

"Keep with ... foreign competition." (Corrigan, 1990, 70.)

"The competitive edge is a state of mind where you're always trying to outsmart the other guy." (Auerbach, 1991, 34.)

THE TRENCHES

"Our 'trenches' are the labs, fabs and other engineering departments in which our readers ... work. If chief executive officers are generals, engineers are the equivalent of, well, military engineers. They devise the weapons, la down the bridges and participate in strategies to bypass -- or march through -- the front line of the opposition. Like trops in the field, engineers in the trenches know their territory and have definite opinions about the larger theatre of operations -- their industry." (Bellinger, 1991, S4.)

"The U.S. electronics industry is pinned down in the trenches of an economic battle, according to our troops in the R&D labs and engineering workplaces of America. And right now, the battle is going nowhere." (Bellinger, 1991, S75.)

"The view from the trenches may be murky at the moment, but battlefronts are a mix of forward thrusts and strategic retreats. In the end the fallbacks may be an opportunity to regroup." (Bellinger, 1991, S45.)

METAPHORS OF WAR

"Why is the American electronics industry bogged down on the economic front?" (Bellinger, 1991, S75.)

"'Even if Americans don't have the highest standard of living, the one with the most "toys" doesn't win with regard to the overall quality of life!' Responded another engineer, referring to the small living quarters, long commutes and long hours, 'The Japanese living conditions in Tokyo are horrid.'" (Bellinger, 1991, S81.)

SMB: Who are the good guys and who the bad guys here?

Good guys = Heroes, white hats, friendlies, allies. Bad guys = Villains, black hats, enemies.

What are the weapons, the technologies, the strategies and tactics?

SMB: There is no innocence anymore in the offices of North America. Office workers are coming of age in a way that factory workers have already done many years ago. Everyone today is ready to dodge the next blow.

SMB: Soldiers use a business metaphor to characterize their actions and purposes. War for them is "a grim business" or "just a job." They speak of the "business of war" and say they are "just doing their job." Football players and boxers speak of "meaning business" when they're intent of winning. A poster for the BC Lions says: "We mean business."

SMB: We're watching a phase of war being described: the encircled-wagons phase, Fort Apache beseiged, the London blitz, Hong Kong during WWII, a ship sinking in the South Pacific. We're listening to the distress signals, the cries for help. At similar times in their history, North Americans have responded by calling up fictional superheroes like Flash Gordon, Superman, and Sgt. Rock. But no superhero can pull us out of economic decline.

"How to Survive when the Company is Looking out Only for Itself," Fortune, November 18, 1991, cover.

"Whole levels of middle management have been wiped out and will not be replaced. (Harold Johnson, managing VP of Korn/Ferry International, an executive search firm in Brownstein, 1991, 29.)

"Like lieutenants in the army, these [middle managers] are the people who translate the generals' commands, squad by squad, into movement on the ground. But their demoralized state of mind today is not at all conducive to improving productivity or increasing quality -- let alone innovating. All too often, the people who used to be the brass' most reliable backers ... now seem to be more disenfranchised and cynical than the hourly folks. And because of their perception that the upper echelon has turned on the underlings, the white-collar blues won't go away anytime soon, economic recovery or no." (Fisher, 1991, 70.)

"While middle managers make up only 5% to 8% of the work force, they account for 17% of all dismissals in the past three years. ... Research also shows that thousands of companies have downsized more than once since 1988." (Fisher, 1991, 71.)

"'Fear is rampant in the workplace,' observes Robert J. Kriegel, a consultant and author of a book called If it Ain't Broke ... Break It!" (Fisher, 1991, 71

"Two hundred years after Treasury Secretary Alexander Hamilton helped set America on its path to greatness, the nation is still embroiled in a battle over the government's proper role in nurturing the country's industrial might." (Carey, 1991, 128.)

"Unless Uncle Sam invests more in the technologies of the future, [lawmakers, technopundits, and high-tech chief executives] warn, America's decline is as inevitable as the sunset. 'While the White House is debating ideology, other countries are eating our lunch,' fumes Senator Jeff Bingham (D-N.M.)." (Carey, 1991, 128.)

"Industry after U.S. industry, from autos to semiconductors, is being beaten in world markets." (Carey, 1991, 128.)

"Now, according to the industry-funded Council on Competitiveness, among others, there's sobering evidence of a decline in U.S. living standards. Even the Bush Administration admits to worry over the future. 'By the best measure of competitiveness -- income per capita -- the U.S. is still on top,' says John B. Taylor, a member of Bush's Council of Economic Advisers. 'But we may not be growing fast enough to provide for our children.'" (Carey, 1991, 128.)

"This conflict ... leads to indirect / funding of technology important to industry -- but not direct funding unless the magic words 'national interest' are invoked." (Carey, 1991, 128-9.)

"The latest Council on Competitiveness report [is called] Gaining New Ground." (Carey, 1991, 129.)

"Washington [will not] pattern itself after Japan Inc." (Carey, 1991, 129.)

"'Unless American firms improve their ability to reach out and bring technology to market rapidly, U.S. competitiveness will continue to erode -- no matter how ambitious or far-reaching government technology policy is,' the Council on Competitiveness warns." (Carey, 1991, 129.)

"It may well be that tax policies, environmental regulation, health care costs, the value of the dollar, and industry's own resolve will determine U.S. competitiveness -- no matter who wins the great industrial policy war." (Carey, 1991, 129.)

"If Congress writes rules that are too rigid for the new era of financial services, it may win the war of the '80s -- and lose the war of the '90s." (Young and McNamee, 1991, 123.)

"Without convincing evidence to the contrary, the Cockroach Theory of Economics still seems applicable here: Once you've seen one piece of bad news, more will follow." (Young, 1991, 123.)

"Bennett A. Brown ... the chairman of Citizens & Southern Corp. rejected a hostile takeover bid from NCNB Corp.... Even though [NCNB chairman Hugh L.] McColl [Jr.] told Brown that he had "launched his missiles," the brash, acquisitive McColl backed off with uncharacteristic meekness." (Hawkins, 1991, 116.)

"Her formula is exuding the scent of profits. ... Now rivals are trying to beat [Anita] Roddick [owner of the Body Shop] at her own game." (Zinn, 1991, 115.)

"Turned a profit." (Zinn, 1991, 115.)

"However much money she makes, however tough the competitive battle, she promises to remain ever the banner-waver of old." (Zinn, 1991m 115.)

WE-GROUP GLORIFICATION

"The free-born Saxon finds his pulsations quicken because all centres around and is conducive to the well-being of that sweetest and happiest spot under the blue azure of God's skies, known to him as home." (Mason, 1898, 86)

ME-OR-YOU WORLD (US AGAINST THEM)

"'People who develop technology don't share it with their competitors,' says Thomas W. Strauss, a Salomon vice-chairman." (Spiro, 1991, 82.)

SMB: Life in a "me-or-you" or adversarial world is not about love, communication, and full self-expression; it is about control, domination, and survival. Labelling, evaluation, treaty-making all go on in a survival-focussed world, people with friends and enemies, attackers and defenders.

SMB: It's surprising how attitudes in an adversarial context prove and ramify themselves./ We use the idea we have of a person to define that person. Then we put on conceptual blinkers, ignoring things about that person that don't fit our limiting ideas of him or her. We see only those ideas that do prove our contentions.

Thus, our evaluations or judgments commit us to taking sides vis-a-vis the other. And we extend taking sides to that person's friends, colleagues, etc., on the basis that "my enemy's friends are my enemies; my enemy's enemies are my friends." Next we construct a self-serving history of actions that centres in ourselves the grounds for our successes and centres in others the grounds for our defeats. Adversarial life could not go on without the self-serving rendering of events. We validate ourselves and our allies and invalidate our opponents. We represent ourselves as winning and our opponents as losing. We strategize to dominate our opponents and avoid their dominating us.

SMB: We take our adversarial and competitive metaphors from three other, related arenas: that of war, sports, and gaming. Three examples would be a battle between two armies, a football game between two teams, and a poker match between two card-players.

"Mutimedia Battle Lines Drawn." (Van Brussel, 1991, 1.)

"As the multimedia pie grows, vendors are racing to establish who will get the largest piece." (Van Brussel, 1991, 1.)

"Most people in the interactive multimedia field 'historically are competitors one day and cooperating and co-bidding on a contract the next.'" (Rockley Miller, editor of multimedia Multimedia & Video Disc Monitor in Van Brussel, 1991, 1.)

"Users are seeing the emergence of a [multimedia] standards war." (Van Brussel, 1991, 6.)

"Like so many other vendors, Straus Computer Inc. has moved to Reduced Instruction Set Computing (RISC)-based technology which it hopes will help it go toe-to-toe with Tandem for its share of the worldwide fault-tolerant market." (Fuochi, 1991, 9.)

"Profits Up Once Again at Data General Corp." (Wintrob, 1991, 10.)

"... in the black." (Wintrob, 1991, 10.)

"The computer industry seems to have adopted a new attitude. No longer are companies seeking to grow based on a strategy of proprietary technology and account control. Instead, it's a strategy based on adding to what's already out there. And the real beneficiary is the user." (Anon, "Editorial: The Real Reason," 1991, 14.)

"Mergers, acquisition and downsizing are stripping away the layers of middle management, who often acted as intermediaries between functions. Decentralization and globalization of operations are forcing companies to put greater control into the field. These trends are altering traditional chains of command and resulting in flatter corporate organizations than ever before." (Anon., (McDonald, 1991, 15.)

"The players are choosing sides for the multimedia race.

On one multimedia team, Bajarin sees Microsoft, Tandy and possibly Nintendo lining up to take on Kaleida, with Apple, IBM and possible Sony.

'We're seeing the industry move in such a way that these two big forces are going to be really fighting it out.' ...

The battle will take place on the fronts of 'audio, video, voice CD-ROM, stereo, mass storage', [etc.]" (Tim Bajarin, Executive VP of Creative Strategies Research Internation Inc. of Santa Clara, CA in Casselman, 1991, 18.)

"For much of the last decade, U.S. companies have been maligned as wimps that lacked the grit and gumption to stand up to japanese and European rivals. As they cowered in th big shadows thrown off by the Siemenses and Matsuhitas of the world, American firms caved in to quarterly earnings pressures and skimperd on long-term technology investments, But lately, the derisive criticism has begun to ring hollow. Domestic corporations, perceived by many as the world's weaklings, have put on new muscle and become industrial warriors capable of blowing away even the most intimidating global competitors." (Pomice and Cohen, 1991, 65.)

"America's toughest companies ... display tenacity and innovation in beating up global foes." (Pomice and Cohen, 1991, 66.)

"Pall, an industrial filter maker, has trounced Japanese competition." (Pomice and Cohen, 1991, 66.)

"Thermo Electron aced out a European firm in paper recycling." (Pomice and Cohen, 1991, 66.)

"The specter of an ever-expanding Thermo has Europe's industrial giants quaking." (Pomice and Cohen, 1991, 74.)

"Pfizer is muscling a German drug giant." (Pomice and Cohen, 1991, 66.)

"Hewlett Packard has routed Japanese rivals in laser printers." (Pomice and Cohen, 1991, 66.)

"The moral of these stories is simple: Getting tough is the only way to thrive in today's global market." (Pomice and Cohen, 1991, 66.)

"Pall Corp. has vanquished two Japanese rivals in a fierce battle over next-generation [blood] filters." (Pomice and Cohen, 1991, 66.)

"When [Pall Corp."When [Pall Corp.] recently confronted Asahi ... and Terumo, ... it was faced with one of the stiffest competitive challenges in its history." (Pomice and Cohen, 1991, 66.)

"Pall turned back the Japanese attack on its market position with supeior technology." (Pomice and Cohen, 1991, 66.)

"Says Asahi Senior Vice President Takeyuki Mayamura, "Pall is very tough." (Pomice and Cohen, 1991, 66.)

"Pall's ability to expand and dominate in both the United States and Europe has been aided by duplaicate manufacturing facilities on both sides of the Atlantic." (Pomice and Cohen, 1991, 66.)

"Healthy profits [are] the lifeblood of any corporate body." (Pomice and Cohen, 1991, 66.)

"The Battle of Britain is over, and Pfizer blitzed the competition." (Pomice and Cohen, 1991, 66.)

"[Pfizer's sponsored scientific studies] slammed rival remedies." (Pomice and Cohen, 1991, 66.)

"[Pfizer] muscled Istin into distribution by doubling its UK sales force to about 120 people." (Pomice and Cohen, 1991, 66.)

"The target of this aggressive campaign -- Bayer AG, a $28 billion German goliath with a sizeable chunk of the cardiovascular drug market in Britain -- is about to have palpitations." (Pomice and Cohen, 1991, 66.)

"Now [Pfizer] intends to grab a sifnificant piece of the $125 billion global;

SOCIAL DARWINIST STRUGGLE FOR SURVIVAL

"In that modern-day tribe called a corporation, it's still the survival of the fittest. And in the treacherous nineties, the fittest will certainly be the best informed." (Dow Jones ad in Business Week, Sept. 23, 1991, 33.)

"The Fight for Survival September to June of the First Year" (Cohen, 1973, 11.)

"IBM is fighting tooth and nail in the market position with Microsoft." (Van Brussel, 1991, 6.)

"The people who can pounce first are going to make money." (Weiss, 1991, 84.)

"Like so many companies with a hangover from the roaring '80s, Horne's problems began after a management-led leveraged buyout." (Schroeder, 1991, 39.)

"Aggressive expansion drive." (Schroeder, 1991, 39.)

"Snapping up troubled, middle-market chains." (Schroeder, 1991, 39.)

"Swallowing Chicago's Higbee Co. chain." (Schroeder, 1991, 39.)

"In that modern-day tribe called a corporation, it's still the survival of the fittest. And in the treacherous nineties, the fittest will certainly be the best informed." (Dow Jones ad in Business Week, Sept. 23, 1991, 33.)

"The Fight for Survival September to June of the First Year" (Cohen, 1973, 11.)

"IBM is fighting tooth and nail in the market position with Microsoft." (Van Brussel, 1991, 6.)

"The people who can pounce first are going to make money." (Weiss, 1991, 84.)

"Like so many companies with a hangover from the roaring '80s, Horne's problems began after a management-led leveraged buyout." (Schroeder, 1991, 39.)

"Aggressive expansion drive." (Schroeder, 1991, 39.)

"Snapping up troubled, middle-market chains." (Schroeder, 1991, 39.)

"Swallowing Chicago's Higbee Co. chain." (Schroeder, 1991, 39.)

Get Thomas or Znaniecki's definition of the situation: Whether or not our view is real, it is real in its consequences.

"Since the recession began in July 1990, more than 1.6 million jobs have been lost." (Greenwald, 1991, 35.)

NBC Nightly News reported on October 30, 1991 that 23 million, nearly one in 10, Americans was on food stamps.

"The anything-goes 1980s." (Reibstein, 1991, 19.)

"The financial civil war that swept across America in the past decade was a ripsnorting string of shoot-'em-ups like nothing ever seen on Wall Street or Main Street. Withering volleys of money shot back and forth as insurgents stormed one entrenched corporate position after another. Counting friendly and hostile deals, more than a third of the companies in the Fortune 500 industrials were swallowed up by other concerns or went private. ... Buyers shelled out an astounding $1.5 trillion, plus billions more in defensive maneuvers. ... Did they create new wealth for the whole economy...? ... No." (Faltermayer, 1991, 58.)

"Would-be- masters of the universe luxuriated for a time on their slice of an estimated $60 billion in fees for dealmakers, lawyers, and commercial banks." (Faltermayer, 1991, 58.)

"The symbolic sound of the early Nineties, audible above the groans of wounded corporations, is the vulture investor's flapping wings." (Faltermayer, 1991, 58.)

"While internecine strife hogged attention at home, the U.S. retreated in the far more important war of global competition. Biggest winner: Japan, where companies stay in fighting trim without having to listen for predator's footsteps." (Faltermayer, 1991, 59.)

"The sideshow will heat up again one of these days, given the system's tolerance for blitzkrieg tender offers." (Faltermayer, 1991, 59.)

"[Most raiders had] an interest mainly in self-enrichment." (Faltermayer, 1991, 60.)

"A free market for corporate control is basic to capitalism, but even the most fundamental principles have their limits. Honoring the First Amendment does not have to extend to child pornography.

"Determining where the line should be drawn requires a close look at the results of those deals built on creative leverage. Cold objectivity is essential here. Suppress your horror at down-home hardship -- the abrupt layoffs, the padlocking of the sole factory in a company town. Often the M&A wave was not the villain. Intensifying competition, which brought about the need to consolidate production and cut overhead, might have doomed the factory anyway." (Faltermayer, 1991, 60.)

"Says [Borg-Warner's] CEO James Bere...: 'There's nothing like the survival mode to get humans moving.'" (Faltermayer, 1991, 61.)

"'There was a free lunch until 1988. But people got greedy.'" (NYU's Edward Altman in Faltermayer, 1991, 68.)

"Like most speculative booms, the follies of the Twenties and the Eighties had one thing in common: using other people's money to get rich. The difference was that instead of relying on borrowed money to make a killing in stocks, the fast-buck folks of recent times made a killing with entire companies." (Faltermayer, 1991, 70.)

"The genius of the American system -- enormous flexibility -- has its price. At any given time the society may veer off, so intent on testing the limits of a principle that it loses sight of basic wisdom. [That] wisdom ... was overlooked amid the takeover mania of the Eighties...." (Faltermayer, 1991, 70.)

"'[The M&A binge of the '80s] was raw foolishness. We bought the self-righteous and self-serving arguments that justified a raider strategy to pursue wealth.'" (CEO Ryal Popa of Storage technology in Teitelbaum, 1991, 73.)

"CEOs ... were in the trenches themselves during the takeover wars." (Teitelbaum, 1991, 73.)

"Fortress Europe." (Smith, 1989, 44.)

"Compromise and the thought that others might be right doesn't always come easily to a nation built largely on individual effort and enormous belief in itself." (Hampson, 1989, 46.)

"Americans lately have consumed too much, saved too little, and seemed short-sighted about investing in the future." (Hampson, 1989, 46.)

"'Yes,' one young bureaucrat says sarcastically, 'our values are a real threat to the West: thrift, hard work, respect for education, commitment to the family.'" (Powell, 1991, 33.)

"Many Europeans look to the Japanese conquest of industrial America as a cautionary tale." (Powell, 1991, 33.)

"It's evolution. Successful firms will grow big, and smaller ones will shrivel and die." (About firms of upwards of 800 lawyers, Management specialist David Maister in Glaberson, 1986, 104.)

"Huge profits ...created little incentive to scrutinize payrolls, costs and employees. ... Times changed. Profits dwindled." (Del Vecchio, 1991, 8.)

"Members of a generation that has made a pastime out of prolonged adolescence." (Thomas, 1986, 26.)

"Egalitarianism might have been the avowed ethic of their youth, but competition was, and still is, the harsh reality." (Thomas, 1986, 27.)

"From the first, the Baby Boomers were accustomed to instant gratification. Often brought up in shiny new suburban enclaves of middle-class comfort, they were doted on by parents who were counseled by Dr. Spock to dispense with the rigidities of traditional child rearing. ... Hopping from one instant fad to another ... they moved as a single mass, conditioned to think alike and do alike. Trendiness became a generational hallmark; from pot to yoga to jogging, they embraced the In thing of the moment and then quickly chucked it for another." (Thomas, 1986, 28.)

"In reaction to parental values deemed empty and materialistic, a flamboyant and vocal minority known as the Woodstock Generation preached rock music, free love and heightened consciousness. Mostly they celebrated youth." (Thomas, 1986, 28.)

"'Money is power.'" (Jerry Rubin in Thomas, 1986, 28.)

"For some years, entertainers had lost the '60s activism spirit and were getting caught up in our society's general sense of greed." (Baez, 1990, 55.)

"Those who have been striving to be conscious in business, in education, in health care, and so on could join forces to give the stifling materialistic worldview a shove. True, the paradigm is already shifting.... But, because of the environmental crises, the shift has to take place quickly." (Ferguson, 1990, 56.)

"Whatever happened to the Love and Peace generation? Whatever happened to the people who landed on magazine covers because they had thrown away lucrative careers to help the less fortunate irrigate their soy fields? At what point on our evolutionary time line did the 'search for self' devolve into an ontology predicated on ownership? I have, therefore I am. Where, in short, have all the flower children gone?" (Woodruff, n.d., n.p.)

"Our enormously productive economy ... demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our ego satisfaction, in consumption. We need things consumed, burned up, worn out, replaced, and discarded at an ever-increasing rate." (Retailing analyst Victor Lebow after WWII in Durning, 1991, 73.)

"Money is the absolute standard. Freedom, and the dignity and well-being of one's fellow creatures, simply don't figure in the basic formula." (Ventura, 1991, 78.)

SMB: The social Darwinism of American business permits it without discomfort to circle the wagons and fire inwards.

"It's a marketplace out there. In order to survive, let alone thrive and prosper, you've got to be a guerilla." (Levinson, 1989, 2.)

"Many people consider the things which government does for them to be social progress, but they consider the things which government does for others to be socialism." (Chief Justice Earl warren.)

SMB: The Woodstock generation, that swore it would never grow up, is coming of age on the corporate battlefield of America.

"Seven Deadly Sins of Debt." (Reibstein and Friday, 1990, 53.)

"The King Kong of leveraged buyouts [was] the takeover of RJR Nabisco Inc." (Hawkins, 1991, 27.)

"One reason [for high enrollments in law schools] is obvious: moolah." (Galen, 1991, 31.)

"The economy shed 1.45 million jobs in the 12 months ending in March [1991]." (Bernstein, 1991, 84.)

"'Asking young people to lower their expectations is like telling someone to change the color of their eyes,' says Douglas Coupland, 29, author of Generation X, a new novel that chronicles the cynicism of his age group." (Bernstein, 1991, 81.)

"Pierson [of Airbus] was aiming at Boeing's jugular. ... 'It would be the first time we would be able to go after their cash cow,' says John T. Leahy, Airbus' U.S. sales chief." (Yang, 1991, 28.)

"The cost of doing battle with Airbus may be as stunning as the size of the superjumbo itself." (Yang, 1991, 29.)

"Will Boeing Build a Behemoth to Defend Its Turf?" (Yang, 1991, 28.)

"The unrelenting stream of dissappointing reports on corporate profits ... appear to be causing many businesses to rethink their spending plans." (Cooper and Madigan, 1991, 32.)

"Why is the business-government relationship, which is so adversarial in the U.S., so amazingly cooperative in Japan?" (Blinder, 1991, 14.)

"Gould ... relishes the challenge." (Zinn, 1991A, 38.)

XENOPHOBIA

"'Hidden Japan' (Cover Story, Aug. 26) is an amazing portrait of the web of corruption that gives Japan its edge in global markets.'" (Bentley, "Business in Japan and the U.S.: A Study in Contrasts [letter to the editor], 1991, 8.

MAXIMIZING PROFITS: THE GOAL OF BUSINESS LIFE

"Profits boomed." (Spiro, 1991, 84.)

"Money machine." (Spiro, 1991,80.)

"There is good reason to believe this profit surge will have real staying power." (Spiro, 1991, 80.)

"Be excellent or perish in the cutthroat competition of the free market." (T.J. Rodgers, president of Cypress Semiconductors in McLeod, 1990B, 84-6.)

"A low-profit business." (Spiro, 1991, 81.)

"Trying to profit from price differences." (Spiro, 1991, 82.)

"Big profit centers." (Spiro, 1991, 82.)

"Lock in profit." (Spiro, 1991, 82.)

"The Street is ... making huge sums by creating new products and strategies and selling them to clients." (Spiro, 1991, 83.)

"'You can lose a lot of money in a hurry if you aren't careful.'" (John Kriz of Moody's Investors Service Inc. in Spior, 1991, 84.)

"Profit margins ... have come under pressure." (Weiss, 1991A, 85.)

"That tore deeply into profits." (Depke, 1991, 38.)

"U.S. brokers ... are reaping record profits." (Holden, 1991, 96.)

[He offers 100 marketing weapons.] "Your bank account will brim with profits in direct proportion to how your marketing arsenal brims with these weapons." (Levinson, 1989, 4.)

"[These] fundamentals for winning the battle for healthy, honest, and growing profits ... will serve you well on your way to the battlefield." (Levinson, 1989, 3?)

"Profit is like oxygen -- it is crucial to our survival, but it is not the purpose of our lives," stated [Max] Carim. (Daniel, 1989, 75)

"Reap ... profits." (McWilliams, 1991, 98.)

"Profits are to business what power is to politics - not the raison d'etre but the sine qua non." (Horwitz, 1973, 1.)

"A firm is an organization with a purpose. ... The purpose is ... in general, reasonably, assumed to be the search for profitability." (Horwitz, 1973, 4.)

What does Mototola's CEO consider an 'American Agenda'? At the top of it is the creation of wealth. "The effect of wealth creation on our republic is vital," he tells the readers of Electronics magazine. "Couldn't we enhance the wealth-creating nature of our society?" (Anon., 1990, "A Call for an 'American Agenda'," 50.)

"Even in the basic science [of superconductivity], the international competition is fierce, and other nations are already scrambling hard for products because the potential payoffs appear to be so great." ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

"Since 1950, American consumption has soared. Per capita, energy use climbed 60 percent, car travel more than doubled, plastics use multiplied 20-fold, and air travel jumped 25-fold. We are wealthy beyond the wildest dreams of our ancestors.

"But all this abundance -- while taking a terrible toll on the environment -- has not made people terribly happy. In the United States, repeated opinion polls of people's sense of well-being conducted by the University of Chicago's National Opinion Research Center show that Americans are no more satisfied with their lot now than they were in 1957. Despite phenomenal growth in consumption, the list of wants has grown faster still.

"Psychological data from several nations confirm that the satisfaction derived from money does not come from simply having it. It comes from having more of it than others do and from having more this year than last. Thus, the bulk of survey data reveals that the upper classes in any society are more satisfied with their lives than the lower classes are, but they are no more satisfied than the upper classes of much poorer countries -- nor than the upper classes were in the less-affluent past.

"More striking, perhaps, most psychological data show that the main determinants of happiness in life are not related to consumption at all: Prominent among them are satisfaction wi8th work, leisure, and friendships. Indeed, in a comprehensive inquiry into the relationship between affluence and satsifaction, social commentator Jonathan Freedman notes, "Above the poverty level, the relationship between income and happiness is remarkably small." (Durning, 1991, 73.)

EMPIRICAL MATERIALISM

"Without scientific progress the national health would deteriorate; ... we could not hope for improvement in our standard of living or for an increased number of jobs for our citizens; and ... we could not have maintained out liberties against tyranny." (U.S. Presidential Science Adviser Vancevar Bush [1945] in Jaroff, 1991, 36.)

Empirical Materialism

SMB: When you hold a materialistic rather than a spiritual perspective, your world is smaller.

SMB: The Calvinist American dream says you will prosper if you work hard. But many people are working harder today than they ever have in their lives and not prospering. What is wrong with the American dream?


"Competition from the likes of Hewlett-Packard and Co. was eating CalComp's lunch." (Rayner, 1988, 29.)

"There is a general public turning away from confidence in government, the private sector and enterprise itself. We're just tired." (Conference Board Management Counsellor Audrey Freedman in Anon. 1991. Greenwald, 1991, 36.)

Some of our rationalizations for our adversarial behavior are:

"Executives and academics agree .. that most companies have no choice but to shape up." (Russell, 1987, 47.)

(1) You've gotta do it if you want to:

A. Get ahead B. "Survive, let alone prosper." (CIBC CEO Donald Fullerton in Olive, 1991, 15. C. Make a success of yourself. D. Keep your job. E. Not get left behind.

(2) Everyone else is doing it.

(3) I don't see what's wrong with it as long as:

A. No one else is hurt by it. B. Helps a guy get ahead. C. Helps others. D. They aren't willing to go for it. E. They don't know about it.

SMB: In an adversarial world, it's us against them. We choose sides, compete, explain away our defeats and celebrate our victories. We label the other side foreigners, barbarians, heathen, un-Americans, Nips, Kikes, etc., to attach stigma to them and have others avoid them, choosing our side instead.

"Companies that harness the talents of workers constructively are more likely to survive than companies in which talent is wasted through adversarial relationships. A case in point is the Honda plant in Marysville, Ohio where 2,423 workers under JIT conditions produce 875 cars per day while the AMC Jeep plant 100 miles away in Toledo with an adversarial work force of 5,400 workers produce 750 cars per day." (Myers, 1987, 32.)

"In the business of life, a man's disposition and the secret workings of his mind are better discovered when he is in trouble than at other times." (Francis Bacon in Bowen, 1963, 226-7.)

SMB: In a zero-sum world, your loss is my gain.

EMPIRICAL MATERIALISM

"No culture could survive if its arts and crafts, its weapons and economic pursuits were based on mystical, non-empirical conceptions and doctrines. When human culture is approached from the pragmatic, technological side, it is found that primitive man is capable of exact observation, of sound generalizations and of logical reasoning in all those matters which affect his normal activities and are at the basis of his production." (Malinowski, 1935, 634.)

(Compare with the Australian Aborigine in the Shared Vision article.)

"Reality is analyzed on a perceptual level; it is divided into odors, sounds, tastes, etc." (White, 1958? 28.)

"Man does not live in a world of hard facts, or according to his immediate needs and desires. He lives rather in the midst of imaginary emotions, in hopes and fears, in illusions and disillusions, in his fantasies and dreams." (Cassirer, 1944, 25.)

"The Battle for Europe." (Business Week, June 3, 1991, cover.)

"The world's largest market is up for grabs. While the Europeans and Americans are losing ground, the Japanese are coming on strong." (Anon., "The Battle for Europe." 1991, Business Week, June 3, cover.)

"Free-for-all: Japan, the U.S., and the EC are duking it out to determine who will dominate the New Europe -- and the New Century." (Business Week leader, June 3, 1991, 2.)

"With Europe 1992 drawing near, lines are forming for an all-out assault on the world's richest market. From Manchester to Milan, the Japanese are busy establishing strong footholds in industries from computers to autos. The battle is just being joined, but already it seems that U.S. and European giants are losing ground to Japan Inc." (Business Week, June 3, 1991, 2.)

THE JAPANESE

"Some experts fear that the Japanese ability to organize their research into a program with strong commercial goals could give them the edge in moving the [superconductor] research out of the laboratory.

At the moment, declaring a winner in the superconductivity race is premature. ... 'I wouldn't call what they have done ominous, but it certainly is a sign of intensifying aggressiveness,' says Roland W. Schmitt, General Electric Co.'s chief scientist and chairman of the National Research Board. ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

"Even in the basic science [of superconductivity], the international competition is fierce, and other nations are already scrambling hard for products because the potential payoffs appear to be so great." ("The U.S. has the advances, but Japan may have the advantages," 1987, 97.)

"In Japan, Microsoft Corp. has run into stiff competition from archrival Lotus Development Corp.... The battle is taking place at a bad time for Microsoft." ("Will Lotus Overrun Microsoft's Japanese Garden?" 1987, 76.)

METAPHORS OF AGGRESSION

SMB: Of baseball types, aggressiveness is hardball. Of fight styles, it's boxing and street fighting.

"Competition is tough." (Mandel, 1991, 38.)

"Aggressive new PC prices." (Depke, 1991, 38.)

BUSINESS AS AGGRESSIVE SPORT

"Gould ... revived its stagnating sales with hardball tactics." (Zinn, 1991A, 38.)

BUSINESS AS STREET FIGHTING

"Gould is known as a street fighter." (Zinn, 1991A, 38.)

"Food Lion stores and a union square off over scheduling policies." (Konrad, 1991, 40.)

Pfizer always meets the competition head on,' says Marc Mayer, an analyst at Sanford C. Bernstein." (Pomice and Cohen, 1991, 68.)

"Pfizer's marketplace victories...." (Pomice and Cohen, 1991, 68.)

"With a killer instinct for competition, it zeroes in on the [compounds] with the most potential in order to exploit weaknesses in rival products." (Pomice and Cohen, 1991, 68.)

"The green berets of the surgical selling world." (Pomice Cohen, 1991, 73.)

"Taken the market by storm and left once-dominant German instrument makers stunned."Taken the market by storm and left once-dominant German instrument makers stunned." (Pomice and Cohen, 1991, 73.)

"U.S. Surgical may have frightened off competitive retaliation." (Pomice and Cohen, 1991, 73.)

"U.S. Surgical is counting on its clout with surgeons to keep rivals at bay." (Pomice and Cohen, 1991, 73.)

"[U.S. Surgical] has moved quickly to head off the competition." (Pomice and Cohen, 1991, 73.)

"Davis & Geck is likely to fiercely defend its slice of turf." (Pomice and Cohen, 1991, 73.)

"Given their take-no-prisoners approach to business, that seems like just the kind of skirmish that executives at U.S. Surgical would relish." (Pomice and Cohen, 1991, 73.)

"Hewlett-Packard [is] packing a powerful punch." (Pomice and Cohen, 1991, 73.)

"[Hewlett-Packard] thought if had finally beaten Japan to the punch." (Pomice and Cohen, 1991, 73.)

"By 1989, more than 60 Far eastern clones were closing in on HP's market. In a lightning fast response, the Silicon Valley company struck back with cheap and technologically advanced machines. 'We hit them with a left, then a right hook,' says Richard Watts, Hewlett'Packard's director of worldwide sales and distribution for computer products. ... That fancy glovework ultimately landed pugnacious HP in the winner's corner." (Pomice and Cohen, 1991, 73.)

"[HP is] battling Japanese competitors on their own turf." (Pomice and Cohen, 1991, 73.)

"The U.S. company [HP] has snagged deals with ..." (Pomice and Cohen, 1991, 73.)

"Back in 1989, ... most U.S. semiconductor makers were unconditionally surrendering the memory-chip market to the Japanese." (Magnusson, 1991, 34.)

"The lone-wolf era may be over. Only with collective action can U.S. chipmakers stay competitive with huge, vertically integrated Japanese electronics companies that have used the profits from TV sets, laptop computers, and cellular telephones to fund the next generation of chips." (Magnusson, 1991, 34.)

"The U.S. has scored a victory in its battle to become more competitive in the global economy." (Farrell, 1991, 72.)

Farrell, Christoper. 1991. "The U.S. Has a New Weapon: Low-Cost Capital," Business Week, July 29, 72-3.)

"Japan emerged as the world's most feared global competitor in the 1980s." (Farrell, 1991, 72.)

"The 1990s may just turn out to be the decade when the rest of the world begins to worry about America's new economic muscle." (Farrell, 1991, 73.)

"Perhaps as important is the new world of global capital markets. ... Interest rate markets around the world are increasingly integrated. Investors, armed with round-the-clock computerized trading systems, can shift billions from one country to another, eliminating any persistent real interest-rate disparities." (Farrell, 1991, 73.)

"European companies are suddenly cutting workers at a furious pace." (Reimer, 1991, 44.)

"Corporations ... are running scared. The reason: They fear an onslaught of competition, especially from the Japanese, as the single market of 1992 nears. Says Bill Brodrick, a union official of the Transport & General Workers at Ford's plant in Halewood, England: 'Everyone realizes only the fittest will survive.'" (Reimer, 1991, 44.)

"Corporations ... are running scared. The reason: They fear an onslaught of competition, especially from the Japanese, as the single market of 1992 nears. Says Bill Brodrick, a union official of the Transport & General Workers at Ford's plant in Halewood, England: 'Everyone realizes only the fittest will survive.'" (Reimer, 1991, 44.)

"Typical job seekers at British employment agencies ... are 40-year-old middle- or senior-level managers formerly earning $62,000." (Reimer, 1991, 44.)

"A staggering 23,161 British businesses collapsed in the first half of 1991, and 900 companies are going out of business each week." (Reimer, 1991, 45.)

"Many argue that a leaner, meaner Europe Inc. is just what's needed to fend off such heavyweights as Japan's Nissan and Toyota in a single market. 'We'll need a big increase in volume before we add workers,' says Yves Blanc, director of finance at France's Valeo. For labor that's bad news." (Reimer, 1991, 45.)

"You would be hard put to find a dealmaker whose instincts were so beautifully in sync with the quick-buck mentality of the 1980s. After grabbing control of a floundering GAF Corp., during a proxy battle in 1984, Samual J. Heyman used Drexel's junk-bond network to launch takeover runs against rival chemical companies such as Union Carbide and Borg-Warner. He never bagged his prey, but he pulled down about $500 million in profits from his investments. The crescendo came in 1989: Heyman took GAF private in a leveraged buyout valued at $1.452 billion." (Hager, 1991, 110.)

"U.S. markets shine as Japan loses its lead and Europe gets pummeled." (Neff, 1991, 52.)

"At first glance, it would appear to be sweet revenge on the Japanese corporate titans that have been beating up on their North American and European counterparts. ... More Japanese companies fell off the (Business Week Global 1000) list than those of any other country." (Neff, 1991, 52.)

"The go-go 1980s." (Neff, 1991, 52.)

"The auto slowdown ... clobbered Italy's Fiat." (Neff, 1991, 53.)

"Money still makes the world go round." (Cooper and Madigan, 1991C, 21.)

"Personal income will take another hit in July." (Cooper and Madigan, 1991C, 22.)

"Intelsat is already under pressure to lower rates to compete with the fiber-optic cable networks that cross the oceans. And it's showing bruises as a result." (Vogel, 1991, 103.)

"Intelsat won't give up its monopoly without a fight." (Vogel, 1991, 104.)

"A price war among dealers has put the emphasis on keeping manufacturing costs down." (Eng, 1991, 78D.)


"Everlasting life? ... No, but I do believe in the NBA playoffs!" (Marletter cartoon of guru in meditative posture, talking to man who has climbed a mountain to speak to him, in Business Week, June 3, 1991, 38.)

"[HP's] profit margins have been chopped down to size by low-priced Asian imports. But the company is slugging back with proprietary products like ...." (Pomice and Cohen, 1991, 73.)

"Hewlett-Packard is clearly in no mood to relinquish any segment of the global computer business without a fight." (Pomice and Cohen, 1991, 73.)

"'Our U.S. education has taught us that there was no such thing as a free lunch,' says 42-year-old Marcos Fonseca, Brazil's national planning secretary (Yale '78)." (Katel, 1990, 58.

Every major Japanese company has hundreds of people who sit around clipping stories and researching what their competitors, worldwide, are doing. (Douglas Kaplan, "In Japan, 'Made in America' Doesn't Cut It," Electronic Engineering Times, October 14, 1991, S83.)

A shakedown is rocking the industry. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

Disgruntled employees don't dare leave their posts in 1991. There might not be another job down the road. So they stay and gripe. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S52.)

Technological obsolescence is the chief career issue in Japan. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S57.)

88 percent of our readers say engineers are underutilized. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S67.)

At last month's Semiconductor Outlook Forum, a semiconductor industry analyst at a New York investment company made the following prediction: "We are going to experience a shakeout in the desktop PC business over the next 12 months of unprecedented proportions." Not exactly news to our guys in the trenches at IBM, Digital Equipment and Wang. The bombs have already started dropping in those places.

Next in line: engineers on the semiconductor front. A retreat by the computer sector will leave them on the firing line. ...

No wonder the GIs in the trenches are nervous. ("Nervous and Insecure. With More and More Companies Downsizing, EEs are Worried about Their Jobs," Electronic Engineering Times, October 14, 1991, S45.)

We won the intellectual battleground on how you think about trade. (Protectionist Paul R. Klugman of MIT in Christopher Farrell, "The Choice Isn't Free Trade or Protectionism," Business Week, May 6, 1991, 34.)

The essence of capitalism is the free flow of resources from atrophying uses to tomorrow's advances. (Christopher Farrell, "The Choice Isn't Free Trade or Protectionism," Business Week, May 6, 1991, 34.)

Simple dichotomies -- free trade vs. protectionism -- can be misleading. Just as with the constant tension between the rights of individuals and the demands of society, the wise choice is not in selecting one of two polar opposites. The secret is balancing two competing values. So it is with trade: There's a middle ground between laissez-faire and beggar-thy-neighbor government intervention. (Christopher Farrell, "The Choice Isn't Free Trade or Protectionism," Business Week, May 6, 1991, 34.)

SMB: The go-go Eighties yielded to the nanosecond Nineties.

It's easy to fall into the habit of blaming our woes on others. Today, it often seems as if growth and job gains are coming at the expense of the industrialized world -- and the evidence exists to support the argument. After all, U.S. manufacturers have said that they are shutting downs stateside plants and moving production to Mexico, where labor is far cheaper. (Karen Pennar, "The Global Economy Needs Bridges -- Not Walls," Business Week, Aug. 2, 1993, 60.)


Increasingly, other spiritual legatees of [J.P.] Morgan are devouring the wards of bankruptcy court. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

In the bloody arena of Chapter 11 [takeovers], kindness and mercy are scarce. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

The unfriendly acquisition of Alleghany International Inc. by New York's Japonica Partners was a ripsnorter ending in management's overthrow. (Larry Light, "The Complex Art of the Chapter 11 Deal," Business Week, May 27, 1991, 98.)

Threatening [TWA bondholders] with a long, painful bankruptcy reorganization, Icahn initiated an eyeball-to-eyeball confrontation with bondholders and labor unions. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

Under Icahn's plan..., [TWA's secured creditors are] angry that they'd get a haircut while unsecured creditors would collect $200 million. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

"We're growing more milittant," says Vito J. Iacovazzi, ... trustee for the equipment trust certificates. (Todd Vogel, "How Icahn is Planning to Deplane," Business Week, May 27, 1991, 37.)

The diversification frenzy of the 1970s precipitated the corporate raids fo the '80s, [A. David Silver] explains [in The Inside Raider]. (Frank Mixson, "Books Worth a Look," Entrepreneur, July 1990, 68.)

Although the Japanese heavyweights are now paring costs and altering strategies, they have been slow to diversify into such growth areas as trading in options and futures. (Ted Holden, "Tokyo's Giant Brokers Take a Nasty Tumble," Business Week, May 27, 1991, 96.)

[Tokyo] brokers may suffer a more devestating blow if, as expected, banks win permission to underwrite securities and offer brokerage services. (Ted Holden, "Tokyo's Giant Brokers Take a Nasty Tumble," Business Week, May 27, 1991, 96.)

U.S. powerhouses such as Morgan, Stanley & Co. and Salomon Brothers Inc. are running circles around their Japanese competitors by trading futures and options on Japanese exchanges. (Ted Holden, "Tokyo's Giant Brokers Take a Nasty Tumble," Business Week, May 27, 1991, 96.)

In this rougher climate, even the mighty Nomura will have to work harder to stay on top. (Ted Holden, "Tokyo's Giant Brokers Take a Nasty Tumble," Business Week, May 27, 1991, 96.)

Time Warner was forced by a shareholder's revolt and regulatory pressure to turn tail. (Judith H. Dobrzynski, "Time Warner Feels the Force of Shareholder Power," Business Week, July 29, 1991, 58.)

It's hard to think of another recent episode that incited more vehement shareholder opposition. (Judith H. Dobrzynski, "Time Warner Feels the Force of Shareholder Power," Business Week, July 29, 1991, 58.)

Time Warner shareholders of all stripes ... sprang into action, setting off an avalanche of protest. (Judith H. Dobrzynski, "Time Warner Feels the Force of Shareholder Power," Business Week, July 29, 1991, 58.)

Last winter, Equitable was forced to mount a hard-charging campaign to combat rumors that it was insolvent. (Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.)

The big-money crowd.(Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.)

To deliver fat returns. (Larry Light, "Panicky Policyholders Have Insurers Trembling," Business Week, July 29, 1991, 60.)

Getting back on a winning path. ("These Shorts Aren't Laughing Now," Business Week, July 29, 1991, 62.)

The market surged -- in a rally led by short-selling favorites. ("These Shorts Aren't Laughing Now," Business Week, July 29, 1991, 62.)

Increasingly, Japanese and American giants will have Europe to themselves. (Jonathan B. Levine, "Philips' Big Gamble," Business Week, August 5, 1991, 34.)

[CEO Jan] Timmer will be riding a tiger as he strives to score big hits with his hot new products. The financially weakened Philips no longer has the financial muscle to absorb the kind of big loss it took on its bungled entry into VCRs in the early 1970s. The cash-cow lighting division that once was milked to fund research has had its margins trimmed in a price war with Siemens and General Electric. (Jonathan B. Levine, "Philips' Big Gamble," Business Week, August 5, 1991, 34.)

Who uses automation?

Many [automation] vendors see signs of a new faith spreading in their customer base -- namely, that measured, well-planned factory automation is the key to salvation prosperity, and even survival in increasingly competitive U.S. and global markets.

It's a gospel that automation vendors have been preaching for a number of years. ...

Carmakers and their customers still account for an estimated 35% of all factory automation gear sold. ... Automation fervor is spreading to a broader base of nontraditional [76/7] U.S. customers, vendors say. The pharmaceutical industry, for example, is increasingly turning to vision-based systems for critical jobs in drug-label inspection, notes Gary Wegner, director of marketing and sales for Automatix Inc., a Billerica, Mass., vision vendor.

The electronics industry itself helped boost revenues for vision and inspection systems last year, as well as those of robot controllers. Some 15% to 20% of about $400 million in U.S. robit sales came in sophisticated, highly integrated robot/vision systems used in fine-pitch-packaging electronics assembly tasks, says Charles Henri-Mangin, president of Ceeris International Inc., an Old Lyme, Conn., consulting firm.

The food and beverage industry is also purposefully stepping to the factory automation plate. ... "there are probably more input/output points to be controlled in food and beverage than are controlled in some of our traditional industries." says Lane W. Kirkpatrick, corporate director of marketing fro The Foxboro Co. in Foxboro, Mass., a process-control house.

Other, more traditional market segments also showed strength in 1989, including paper making and energy-related fields, executives point out. ... Detroit's first- and second-tier suppliers ... are turning to automation to meet the automakers' tight standards for quality and just-in-time delivery. ...

Last year, some 60% of U.S. robot sales went to Detroit, against 55% in 1988 (down from 70% in the mid-1980s. (Wesley R. Iversen, "The Automation Gospel Gains Converts," Electronics, January 1990, 76-7.)

Appropriate Technologies

As John D. Rockefeller, III, write, "We have let technology become our master rather than our slave." The critics of the technological society included a few Luddites who would reject any technological change, but other critics took the view that it was not technology in general that was to blame, but rather our choice of technological options. They voted for an "appropriate technology."

Appropriate technologies [are] technologies tailored to fit the psychosocial and biophysical contexts in particular locations and periods. (Kevin W. Willoughby in William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Technology does not exist independently of society, nor is it the sole determinant of social progress. (William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Nanotechnology could lead to dramatic reductions in the time required to move a product from the design phase to volume production. There might be no need for expensive, specialized tooling to be built before manufacture could begin. The designers of a new aircraft might see a working prototype within a few hours or days after their design is completed, and they could then test the prototype as a way of refining the design. Each one could be custom-built according to a different design, without the problem of nonstandard parts. (Jon Roland, "Nanotechnology: The promise and Peril of Ultratiny Machines," Futurist, March-April 1991, 31-2.)

Topping the sweepstakes last year was Thomas F. Frist, Jr., chairman and chief executive of HCA-Hospital Corp. of America who brought in $127 million. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

Topping the sweepstakes last year was Thomas F. Frist, Jr., chairman and chief executive of HCA-Hospital Corp. of America who brought in $127 million. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

In early November [1996], Michael D. Eisner of Walt Disney Co. realized a stunning $197 million gain on stock options. (John A. Byrne, "Executive Pay: The Party Ain't Over Yet," Business Week, 26 April 1993, 57.)

Every investor dreams of beating the market. ("Dean Foust, "Talk about a Glitch in the System," Business Week, 9 Sept. 1991, 82.)

We are witnessing what may be the permanent downsizing of the human work force. (“The Nature of Work in the Twenty-First Century: Certain uncertainties,” Business Horizons, Nov./Dec. 1993.)

In short, jobs are likely to be increasingly scarce--unless the nation decides otherwise. Because a trend is not a law, we can use public policy to deliberately expand job availability. (“The Nature of Work in the Twenty-First Century: Certain uncertainties,” Business Horizons, Nov./Dec. 1993.)

Options for Creating Jobs

At present we have the highest proportion of all 16- to 64-year-olds on a payroll in the nation's history--more even than in the record-setting 1939-1947 World War II years. We can decide to prop this work force up, or we can let it fall as jobs become scarce. Either option will substantially alter American realities.

Should a national debate prompt us to conclude that we want as many jobs -- good jobs -- beckoning as there are job seekers, we would have the following options to choose from:

1. legislate a vast program of infrastructure renewal (rail, air, port, and highway upgrading);

2. expand the ratio of providers to clients in the social services (more teachers, home health aides, social workers);

3. revamp the tax code to encourage entrepreneurs and new businesses;

4. legislate a higher cost for requiring overtime work rather than hiring more workers;

5. renew our use of the 1946 Full Employment Act, which cast government as a job provider when all else failed.

On the other hand, should we conclude that we want to ease our dependency on payrolls and reduce the centrality of paid work in our adult lives, the following options would be open to us:

1. reduce by law our five-day, 40-hour week to four days or 32 hours;

2. require a sabbatical year for upgrading skills;

3. encourage phased-in early retirement beginning at age 45 and ending at 55;

4. employ a Child Allowance Act, such as those overseas, to subsidize child-rearing costs;

5. employ a national health care plan to subsidize all such costs;

6. employ a national service corps and free college tuition to delay work force entrance and boost the employability of new starts.

Because several of these policy options both generate more job openings and lower the urgency of getting a job, they should earn ever more support in the job-short years ahead--provided we opt to create a "saner, more equitable, gender-balanced, ecologically conscious future." (Henderson 1991). (“The Nature of Work in the Twenty-First Century: Certain uncertainties,” Business Horizons, Nov./Dec. 1993.)

Appropriate Technologies

As John D. Rockefeller, III, write, "We have let technology become our master rather than our slave." The critics of the technological society included a few Luddites who would reject any technological change, but other critics took the view that it was not technology in general that was to blame, but rather our choice of technological options. They voted for an "appropriate technology."

Kevin W. Willoughby, Technology Choice: A Critique of the Appropriate Technology Movement. (Westview Press: 1990.)

Appropriate technologies [are] technologies tailored to fit the psychosocial and biophysical contexts in particular locations and periods. (Kevin W. Willoughby in William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Technology does not exist independently of society, nor is it the sole determinant of social progress. (William N. Ellis, "Weighing our Technology Options," Futurist, July-August 1990, 41.)

Human-Centered Automation

Assessing whether automating a given task will enhance a pilot's ability to fly an aircraft [is] a concept called human-centered automation. (Gary Stix, "Where the Pilot Meets the Machine," Scientific American, July 1991, 105.)


Unemployment - Youth and Unions

Unions are struggling to find a way to recruit the next generation of workers, and to make the legacy of union struggles relevant for those trapped in low-wage "McJobs."

... Of the youngest workers, aged 15 to 24, only 11 per cent-- just 190,000 in all -- currently belong to unions, according to a Stats Can report released this week. In comparison, 44 per cent of workers aged 45 to 54 -- more than one million strong -- are unionized, mots of those in traditional blue collar or public sector jobs. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C1.)

According to Statistics Canada:

  • Almost 50 per cent of 15-to-24 year olds with jobs are working part-time, compared to 20

per cent just seven years ago. Among working non-students, 20 per cent held part-time jobs in 1996, compared to just six per cent in 1976.

  • About 500,000 jobs for young people disappeared between 1989 and 1996, creating a

youth unemployment rate of over 16 per cent. Counting those who've quit looking for work, the actual unemployment rate is estimated at more than 25 per cent.

  • Real earnings for young men aged 17 to 24, adjusting or inflation, dropped by almost 20

per cent between 1979 and 1992. In comparison, real incomes for those over 45 rose by more ghan six per cent.`

Numbers like these, in theory, should be producing plenty of angry and disillusioned young people eager to sign a union card and fight for higher wages and steadier work. But it hasn't worked out that way. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C4.)

Unemployment - White-collar Jobs

Even highly-educated and high-ranking professionals say that it is now difficult for them to find secure jobs. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 33.)

Unskilled Workers - See Employment Trends - Fate of Unskilled Workers

Workers - Devaluation

"Only yesterday, employees were held to be the most valued assets of a corporation. Then the recession began to do its work. Today the job market is awash with curricula vitae, and people don't seem so valuable any more. Where are they now, the workers who were invited to conceive and embrace a company vision? Many are gone, swept up in the dehumanizing process of 'body-count reductions.'" (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15)



Adapt or Die

I regard technology as a very important means to improve our industrial competitiveness -- provided it is managed well. The fact is that we really have no alternative. Technology is easily available to all our competitors whether they are in the industrialized or the newly industrializing world. If Canada is to grow then I believe its goods and its services must be internationally competitive. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

If Canadian industries do not advance their use of technology they will be left behind. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 31.)

The challenge for Canada is not only to find ways of riding the current wave of technological innovation but, given that the rate of change is accelerating, we must also find ways of remaining on the leading [edge].... Labour, management and government must work together to achieve this result. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Mill manager Gary Marshall figures an old-fashioned mill would need 500 employees to produce as much as he does with 350. ... [Les] Reed [former head of the Canadian Forestry Service] adds that MacBlo's Port Alberni mill may be a case of 350 more jobs rather than 150 fewer ones. "If the forest industry hadn't undertaken this kind of thing, we wouldn't be in business today," he says. (Stoffman, 1984, 40.)

For domestic manufacturers, the lag in adopting numerically controlled (NC) machine tools and robots, in comparison with Canada's major trading partners, translates into higher per unit costs, lower productivity, poorer quality, and slower market response. ("Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

"Drucker says that today's managers must learn to innovate or they won't be around by the year 2000." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.)

"We are in the midst of the largest wave of innovation since the 1890s. Anyone who does not swim with the tide is apt to be overwhelmed by it."(Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.)

"View change as an opportunity -- not a threat. ... Welcome new ideas which can improve the way you do things. Seek opportunities to innovate. ... If unexpected successes are not exploited, ... new competitors will step-in [sic] and grasp the opportunity. Within five years the new competitor may likely control your market which will have shifted to them." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.)

"Organizations are going to face major changes in society in the 1990s and ... their only choice is to 'adapt or die.'" (Dianne Daniel, "Adapt or Die - Be Prepared for the 1990s, CBTA Told," Canadian Computing, 12 October 1989, 75.)

In the 1990s, newly introduced goods and services won't give you a sustained competitive advantage for many months. Not only will you have to innovate continually; you will also have to renovate. Your organization's culture will have to change and become more nimble. Only nimble companies will survive and flourish in the next decade. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

ITAC has recently released a study on what it called "The Enabling Effect," advancing the hypothesis that both the intensity of this multiplying and leveraging effect and its scope increase over time. The publication identifies the link between strategic vision and the full harnessing of information technology. The report identifies three world-wide trends:


the speed of innovation in information technology
the intensification of world competition, and
the emergence of time as a competitive tool.

... Canada remains well below its potential in world competition. ... Our use of information technology is focused on the most basic levels of cost reduction and quality enhancement; we are missing the chance to use it for strategic and visionary effect.

The single greatest challenge for the 1990s is to develop Canada's capacity to produce tradeable goods and services necessary to generate the wealth to enhance our standard of living. It is imperative that we enable ourselves with tools, such as information technology, to meet this challenge. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

If Canada is to succeed in the global trading environment of the 1990s, we must take urgent action to exploit the enabling effect of computers and telecommunications. Canada must stop living off its illusory short-term prosperity; around the world, national economic development strategies are increasingly being based on information technology. Tomorrow's key success factors will make it mandatory for corporations, even nations, to survive and evolve through the application of information technology. (Graeme Hughes, President, Information Technology Association of Canada, "Meeting the Information Technology Challenge," Inside Guide, Winter 1989, 93.)

In the age of the lean, mean organization, using technology may be the only way to succeed. ... The successful 21st century corporation will recognize technology as an enabler, a tool with which they can move forward (Jan Duffy, Partner, Peat Marwick Stevenson & Kellog, "The Fully Connected Workplace," Inside Guide, Winter 1989, 99.)

It's something that's here today and if you're not working on it in your data centre, you're not going to survive. (Rosemary LaChance of Farber/LaChance Inc., Fear Persists as Lights Dim in the Data Centre," Computing Canada, 4 January 1990, 1.)

"Wal-Mart ... collects accurate data on its network of 1400 stores just 90 minutes after the close of a business day. So Wal-Mart can make decisions more than 10 times faster than Sears. Honda Motor Co. Ltd. of Japan can assemble a new car in one-fifth the time it takes Chrysler Corp., Ford Motor Co., or General Motors Corp. In textiles, Milliken of Spartansburg, South Carolina, now takes less than a day to create a new customized product. This used to take months." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Quick Response is the New Competitive Edge," Inside Guide, Summer, 1990, 25.)

We believe that in 1990 all of your products are going to be integrated with everything else. ... If you don't run your data centre efficiently and effectively, your company is going to give it to someone else to run. ... You can't do this by yourself. You have to convince your staff to work themselves out of the job they have today. (Arnold Farber of Farber/LaChance Inc., "Fear Persists as Lights Dim in the Data Centre," Computing Canada, 4 January 1990, 5.)

Thinking seriously about the important role of the individual in the corporation, as we began to do in the late 1980s, was a useful and overdue exercise. But after that short-lived burst of introspection, coming hard on the heels of the materialistic excesses of the past decade, business leaders appear to be driven again. Driven to fight off the demons of recession, inefficiency and global competition and to swing the pendulum back to career-obssessed workaholism. Business is hell, so let's get on with it. (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 156.)

[A recent full-page ad in The Wall Street Journal ... reads:] "He who hesitates is lunch."(David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

In the face of such changes, the best way to get back into the workforce or protect job security against further layoffs is to find out where the new jobs are likely to appear, reassess your qualifications and organize a personal skills upgrading program. (James Purdie, "Upgrading is the best route to job security," Financial Post, 16 Dec. 1991, 11.)

"Stop finding yourself, pal: It's time to get back to work -- if you still have a job, that is.” (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

The way out is to embrace change, create a flexible new industrial model, provide incentives for a continuing stream of new products and services, and redefine job categories to tap workers' repressed creative energies. (James Purdie, "Upgrading is the best route to job security," Financial Post, 16 Dec. 1991, 11.)

"It's robotics and computers. Nobody's talking about man-made things any more. It's all done by machine," says [Michael Rosa, a self-employed businessman in Montreal]. (Eric Beauchesne, "Canadians Seem Resigned to Fewer Jobs, Poll Finds," Vancouver Sun, 5 July 1996, A9.)

Benefits of Technology - Saves Cost of Labour

Computer networks bring various functions together; employees must work as a team. New work patterns such as this have enabled companies to cut layers of management, Large manufacturers can run their organizations with half the number of managers they required in the 1970s. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

"What is a computer for, if not to save labor?" (Jim Steinhart, "Database Octopus," Canadian Datasystems, May 1991, 58.)

"Theoretically every time you make a $10,000 investment on technology you should have replaced one employee." (James Miller, CEO of Royal Trustco in Macleans, Nov. 23, 1992, 44.)

Benefits of Technology - Eliminates Human Error

Do we have to build facilities to check errors after they have occurred or do we automate to produce higher quality? (G.F. Sekely, Vice President, Computers & Communications, C.P. Rail, "No More Band-Aid Solutions," Inside Guide, Winter 1989, 95.)

The whole idea of automation is to eliminate human error. ... We have to change our mindset we have to trust our computers. ... We're throwing people into the middle of the process and these people are making mistakes. (Rosemary LaChance of Farber/LaChance Inc., "Fear Persists as Lights Dim in the Data Centre," Computing Canada, 4 January 1990, 5.)

Benefits of Technology - Allows for Flexible Manufacturing

Computer technology has altered the nature of manufacturing. Companies can now produce in small lots and respond quickly to customers. To achieve flexible production, companies must re-organize. They must dismantle rigid hierarchies and unravel unwieldy bureaucracies. (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

Business ethics

I believe management has a paramount responsibility to demonstrate sensitivity to ... legitimate concerns about job loss, retraining and relocation. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Profit is like oxygen -- it is crucial to our survival, but it is not the purpose of our lives. (Max Carim in Dianne Daniel, "Adapt or Die - Be Prepared for the 1990s, CBTA Told," Canadian Computing, 12 October 1989, 75.)

"The traditional focus [in business] is on profitability," said [Tessa] Marks, [a senior certified accountant at Peat Marwick Thorne and] a United Church member. "A lot of people have been in the situation where the right ethical decision is not necessarily the most profitable." (Douglas Todd, "The Business of Ethics," Vancouver Sun, 27 Dec. 1989, D4.)

Canadian Dream

The Canadian dream could become a nightmare of more plant closings, more permanent job losses and more communities deprived of tax revenues to educate their children, renew their infrastructure and maintain a desired quality of life." (Ford Motor Company of Canada CEO Kenneth Harrigan in Cecil Foster, "GM Canada Mirrors Auto Woes," Financial Post, 16 Dec. 1991, 7.)

Centralization

Elevator manufacturer Otis Inc. ... went from localized service operations to a 24-hour single command centre. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.)

The Ford Motor Company has eliminated distribution centres in its resupply of car plants in Canada and the U.S.

In B.C. a centralized purchasing agency serving ... hospitals and long-term care centres has a pilot project under way in which selected suppliers submit tenders electronically. ...

"The plan is to convert to a fully electronic system in which purchase orders are issued through a computer, drawing on the pricing information in the database. Eventually, payment may be electronically authorized. [said Chris d'Silva, director of material services with B.C. Health Services Ltd.] ....

"There is more technology being used today in the U.S. marketplace in such areas as ordering and inventory control," said [Canterbury Coffee Corp.] president John Wynn. ("Electronic Ordering Used Widely," Vancouver Province, 14 Oct. 1993.)

Capital - Flight of Capital, Mobile Capital, Agile Capital

Companies ... practice 'whipsaw bargaining' -- threatening to move factories to lower wage areas unless workers make concessions. In the U.S., the multinational giant Xerox used this form of blackmail in the first year of NAFTA to bargain down the wages of employees -- even though it posted a $794 million profit! ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Tax load is an important factor for both business and individuals in deciding where to work and invest. In a globalizing economy, high tax rates mean lost opportunities, as footloose business relocate their work to lower-tax jurisdictions. ...

Tax burden and levels of unemployment are related. Around the world, national tax burdens are progressively being shifted away from mobile factors of production such as business and skilled workers, and onto consumption, property and less mobile workers. Canada's high tax burden is thus contributing to our inexcusable unemployment rate, especially among those at the bottom of the wage scale. ("Canadian taxes, a growing concern," Globe & Mail, 9 Sept. 1997.)

Change - Hyperspeed

"If it works, it's obsolete." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Technology," Inside Guide, Winter 1989, 93.)

Comparative Trade Advantage

Comparative trade advantage increasingly means doing things smarter and using sophisticated technology. This is not a secure advantage. Expertise and technology cannot be contained within national boundaries and they rapidly evolve to render yesterday's advantages obsolete. To keep a step ahead of their competitors, industrialists must pay continuous attention to improving their technology management. For companies where managers understand this, technology will provide the key to an effective competitive advantage. (Canadian Manufacturers' Association in (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 31.)

The industrial countries cannot rely on their natural resources to secure comparative advantages in world markets. Their competitiveness has come to depend on their technological innovativeness, management skills, speed of reaction and willingness to forge links abroad to seek new forms of co-operation. Competitiveness has thus come to depend crucially on human skills - - the success of such resource poor countries as Japan and Switzerland is proof of this. (European Management Forum in Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 32.)

Corporation - Impact of Flattening the Corporation

Companies are giving increasing attention to new ways of motivating workers given that many of the traditional avenues such as advancement in the [now flattened] corporate hierarchy will be less readily available. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xi.)

Costs of Technology - Job Insecurity

Greater uncertainty in the long-term market prospects for many products is now commonplace. Volatility in the labour market unfortunately will be the norm. Job security at all levels will be an increasingly fragile concept. Employees in all sectors of the industry, including those on the leading edge, are uncertain of their prospects even two to three years down the road. For some industries, layoffs and recalls have become a common strategy in meeting the vagaries of market demand for their products. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

"Not everyone has decided to treat employees as disposable commodities." (David Olive, 1991, 16.)

Costs of Technology - Stress

The interconnected, interactive world sounds so good. With proper tools people at all levels will do more interesting, responsible work, eliminating the mundane. With effective communication tools layers can be cut with no ill effects. People will work smarter, not harder.


Reality is not so pretty. After years of increased computerization, work hours in organizations have gone up, not down. Stress related illness is increasing. Managers complain they have to do administrative work, such as typing letters, making copies, scheduling travel. They wonder why they have become high-priced secretaries? Meanwhile, secretaries wonder where the interesting work has gone. They only see more people to support and more fragmented work as a result.

Why the gap between the promise and the reality? Because we have multiple, contradictory expectations for what computers can do. We turn to computers to ease the workload. We think computers will free up time, we think we can reduce staff. So we invest in computers, increase the workload, and cut staff.

We have triple-counted the benefits available from the investment but we can't have it all. When we try to, we end up with fewer people trying to do more work. The result is burnout, increased errors, and decreased effectiveness of people and the organization. Everyone feels that computers have not delivered the promised results. ...

Managers must examine critically the potential effects of the tools being brought into our organizations. We achieve overall effectiveness by setting clear, consistent and attainable goals for the tools. Without management's active guidance, inappropriate expectations and disappointment are inevitable. (Mary Baetz, Director, Western Management Consultants, "Get the Most from Your Computers," Inside Guide, Winter 1989, 100.)

Cost of Technology - Technology Shapes the Corporation

Much has been written in the past about the effects of information technology on organizational structure and characteristics. Generally, the premise has been that information technology serves the organization and must be adapted to the particular structure but with an architecture sufficiently flexible to accommodate organizational changes.

One emerging perspective suggests that organizations must now be adapted to the information systems if, indeed, we are to extract the full potential of the technology. (C.D. Sadleir, Vice President, Computing & Communications, University of Toronto, "New Decade - Old Problems," Inside Guide, Winter 1989, 95.)

Cost-Savings from Technology - See Benefits of technology - Saves Cost of Labour

Downsizing - See Unemployment - Downsizing

Drivers of Technology - Felt Need for Increased Productivity

[The] need is for increased productivity on the factory floor ... has led to the widespread use of robotics and other automation techniques. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

Drivers of Technology - Felt Need for Information

One of the major demands driving the market for technology-intensive products today is the insatiable need for information -- in the office, on the factory floor, and out in the field. And this information must be in a form that is flexible enough to be easily manipulated. Gone are the days of waiting for data to come back in printed form. Gone also are the days of sending a telegram and waiting several days for an answer. Now everyone wants the information at their fingertips and they want it with a minimum of pain. They want user-friendly machines they can operate with software-driven menus that are simple and easy to understand. (Denzil J. Doyle, President, Doyletech Corporation, "Where Will Canada Stand?" Inside Guide, Winter 1989, 100.)

Drivers of Technology - Felt Need for Speed

The need to adopt new technologies has been driven mainly by the needs to improve speed, product quality, and productivity, in order to improve the industry's ability to remain competitive, both domestically and internationally. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, viii.)

Many managers now believe that time is becoming an important basis for competitive advantage. Retailers, manufacturers, insurers and bankers have been able to cut product development cycles and delivery schedules by 90 per cent or more." (Harvey Gellman, Chairman of Gellman Heyward & Partners, "Quick Response is the New Competitive Edge," Inside Guide, Summer, 1990, 25-6.)

Earnings - Houses Make More

Houses make more money every year than their occupants. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Employment Trends

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.


The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Employment Trends - Fate of Unskilled Workers

There may be a need for fewer unskilled, semi-skilled and administrative workers since these are the ones most exposed to displacement caused by the introduction of new technologies. There will be a greater need for technical, design, engineering, sales and marketing employees in order for companies to respond quickly to changing market opportunities. There will also be a need for skilled service and maintenance personnel to diagnose and solve problems as they occur. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

Whatever happens to the overall unemployment rate, economists predict that the gap between the rates for educated and uneducated workers will get even wider. (John Daly, "Will They Find Work in the '90s?" Maclean's, Aug. 2, 1993, 34.)

Employment Trends - Forecasts

I think we have every reason to look forward to the future with the expectation that there will be a net increase in jobs. It always happens with technological revolutions. But we must be realistic. There will be job dislocation unavoidably and an urgent need for retraining and relocation. This is what can frighten others. (Guy Saint-Pierre, president and CEO, Ogilvie Mills Ltd., "Technology is a Competitive Weapon," Proceedings of the Canada Tomorrow Conference, Nov. 6-8, 1983. Ottawa: 1984, 33.)

Many companies believe that the elimination of surplus employees has been accomplished to a large degree. Large increases in employment are not expected as sales rise in the future. Greater uncertainty in the long-term market prospects for many products is now commonplace. Volatility in the labour market unfortunately will be the norm. Job security at all levels will be an increasingly fragile concept. Employees in all sectors of the industry, including those on the leading edge, are uncertain of their prospects even two to three years down the road. For some industries, layoffs and recalls have become a common strategy in meeting the vagaries of market demand for their products. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

[Human Resources minister Claude Richmond:] Everyone who is capable of working should be able to find a job. [In spite of the fact that the official unemployment rates was 9.2 per cent in B.C.] (Jean Swanson, "If Welfare 'helps,' why doesn't it help the poor?" Vancouver Sun, 18 Nov. 1989, B5.)

American economist Peter Drucker believes that things will never be the same again in the corporate sector. In his recent book, Post-Capitalist Society, Drucker predicts the decline of permanent jobs in many sectors and the rise of contract work. "The big business, the government agency, the large hospital, the large university will not necessarily be the one that employs a great many people."

Other experts say that the workforce will be increasingly divided into three key segments: senior managers, highly skilled contract workers, and temporary clerical staff. (Scot Blythe, "Generation Xed," Maclean's, 2 Aug. 1993, 35.)

Employment Trends - Full-Time

In 1995, ... 7.7 million people worked full-year, full-time, down 2.6% from the 1990 figure. As a result, in 1995, 86% of all full-year workers worked on a full-time basis, compared with 89% in 1990, 90% in 1980, and 93% in 1970. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Employment - Impacts of Automation

For the individual, traditional values about the way people are educated, gain and maintain employment, and choose a community to live in will require fundamental examination. Clearly, long-term secure employment with a company is no longer taken for granted. Individuals will need to become increasingly entrepreneurial in their career outlook and personal orientation. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, xv.)

Employment Trends - Manufacturing Shrinking

More than 300,000 workers in the manufacturing sector ... have lost their jobs over the past five years. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 32.)

The shift to a service-dominated economy has been underway since the end of the Second World War. At that time, half of all employed Canadians worked for goods-producing companies. Now, three out of four provide services. But until the late 1980s, growth in service sector employment merely outsripped the growth in manufacturing. Since then, employment in manufacturing has actually been shrinking. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 33.)

Employment Trends - No "Jobs for Life"

"Today, there is no such thing as a job for life. You have to cultivate a skill set and make sure it doesn't go obsolete." (Ex-Novatel engineer Beng Fai Siew, now working as engineering manager in Ontario, in John Daly, "Will They Find Work in the '90s?" Maclean's, Aug. 2, 1993, 33.)

Employment Trends - Over-Employment

"It's remarkable how many people are already working at two jobs to make ends meet." [said Bill Robson, senior economist with the C.D. Howe Institute] "Work Wee Cut Called 'Unrealistic,'" Hamilton Spectator, 11 April 1996, C10.)

Employment Trends - Part-time vs Full-time

Overall, the number of full-time jobs in Canada, 10.2 million, has remained relatively constant since 1987, while part-time jobs have grown by 400,000 to 2.2 million. In 1975, part- time workers accounted for 9.9 per cent of the workforce. They now account for 17.7 percent. In fact, eve3n for those who have followed common wisdom and specialized in high technology areas, there are not enough full-time opportunities to meet the demand. (Scot Blythe, "Generation Xed," Maclean's, 2 Aug. 1993, 35.)

Employment Trends - Self-Employed

Statistics Canada ... said all the employment gains last month were in the private sector and two-thirds of the jobs involved people who became self-employed. (Bruce Constanineau, "B.C. Job Growth Slows as Labor Force Rises," Vancouver Sun, 9 Nov. 1996, B5.)

There were at least 188,500 more Canadians declaring themselves self-employed last month than there were in January, 1996. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A6.)

About 1.8 million individuals reported that they were their own boss in 1996, up 28% during the five-year period. They accounted for nearly 13% of the labour force, compared to 10% in 1991. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Employment Trends - Senior Workers

Some companies who have older work forces have said that older workers have greater difficulty adjusting to change due to their seniority, tradition, and education level and may question whether it is really worth learning new techniques at their age. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, x.)

"You can't simply recall the old-line managers to pick up where they left off. Their values and psychological set are rational and analytical. The tough-minded, action-oriented approach is too rigid to adapt to present-day conditions," says Tom Tavares, a Toronto-based consulting psychiatrist.

"Too much has happened to reshape management and leadership styles. What's needed is a new direction -- above all, the ability to see change coming and plan the best ways to meet it.” (James Purdie. 1991, "Upgrading is the best route to job security," Financial Post, Dec. 16, 11.)

Employment Trends - Service Sector

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

Continuing a trend which has existed for more than four decades, job growth was strongest in the service-producing industries between 1991 and 1996. During this period, the labour force in the services sector grew 3.3% to 10.5 million, while declining in the goods-producing sector by 5.8% to 3.8 million. Almost three of every four workers (73%) were in services in 1996. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 4.)

Employment Trends - Underemployment

The number of men working full-time throughout the year declined by 4% between 1990 and 1995, while the number of women dropped by 1%. In contrast, there was an increase of 28% for men and 16% for women among those working part-time for the full year. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

In 1996, there were 159,000 BC residents who had worked mostly part-time (fewer than thirty hours per week) for the full year preceding the census. This represent a 35% increase from five years earlier. As a result of this strong growth in part-time employment, less than half of the BC residents (939,000 people) who worked in 1995 worked on a full-year, full-time basis. (Statistics Canada, Pacific Region, "Part-Time and Self Employment on the Rise," Press release, 17 March 1998.)

In contrast, the number of people who reported that they worked part-time throughout the year increased nearly 20% to 1.2 million. This is almost double the number (680,000) who reported working on a part-time basis throughout the year in 1980. The comparable figure in 1970 was 351,000 persons. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 3.)

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

Employment Trends - Women

In 1996, there were more women working as retail sales clerks than in any other occupation. Five years earlier, the most common job for women was secretary. (Statistics Canada, "1996 Census: Labor Force Activity, Occupation and Industry, Place of Work, Mode of Transportation to Work, Unpaid Work," Daily Statistics Canada, 17 March 1998, 1.)

Flat Corporation - See Corporation - Impact of Flattening the Corporation

Free Trade - Impact on Employment

Since [free trade was brought into Canada in] 1988 almost all the companies belonging to the Business Council on National Issues (BCNI), the corporate lobby group pushing for free trade, actually laid off workers -- more than 200,000 in total. Meanwhile, they increased their revenues by $32.1 billion. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

History of Technology

It's been little more than 10 years since personal computers first knocked on the doors of business in search of jobs. Now, it would be hard to think of an occupation from architecture to zoology that hasn't been changed by allowing the machines in. (Jeff Rockburn, "Observers predict the next revolution will be in software," Toronto Globe & Mail, 6 March 1990, C1.)

The microprocessor ... surfaced with the Apple and is now pervasive sometimes quite visible like the 130 million desktop computers around the world, and sometimes quite invisible like those that control the 10 million automobiles that are shipped in North America each year.

Microprocessors are now more than 100 times more cost-effective than mainframe computers and the gap is widening, while conventional large scale mainframe technology is slowly creeping forward from today's performance levels. (F.T. White, Ventures West Management, Inc., "Microprocessors are Everywhere," Inside Guide, Winter 1989, 99.)

Over the past 30 years, we have witnessed an increase of over one million times in computer performance and a cost improvement of a comparable amount. The biggest contributor to this dramatic change has been the microprocessor. It surfaced with the Apple and is now pervasive -- sometimes quite visible like the 120 million desktop computers around the world, and sometimes quite invisible like those that control the 10 million automobiles that are shipped in North American each year. (F.T. White, Ventures West Management Inc., “Microprocessors are Everywhere," Inside Guide, Winter 1989, 99.)

There has been an evolution in generations of technology from electromechanical technologies to electronics. This evolution has created the need for different occupational and skill requirements. For example, the new production technologies are changing the traditional demarcations between designers and tool makers as well as performing some of the machine set- up tasks. This has led to a perception among many workers that machines have led to 'down- skilling' of some of their traditional 'hands-on' work and replaced it with work which is more of a monitoring and controlling function. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, ix-x.)

Human Error - See Benefits of Technology - Eliminates Human Error

IMF Monitoring

The International Monetary Fund said Thursday that high unemployment rates were a concern in Canada and urged the country to take steps to protect itself from the fallout if Asia's financial crisis. ("Canada's Jobless rate a Concern, IMF Says," Vancouver Sun, 20 Feb. 1998, D7.)

Job Insecurity - See Costs of Technology - Job Insecurity

Jobless Recoveries - See Unemployment - Jobless Recoveries

Obsolescence

Most of the jobs lost are lost forever. (James Purdie, "Upgrading is the best route to job security," Financial Post, Dec. 16, 1991, 11.)

Recent surveys show that technical knowledge tends to be outdated in three years, compared with seven years only ten years ago. James Purdie. 1991, "Upgrading is the best route to job security," Financial Post, Dec. 16, 11.

Strive to keep up with changes in technology. If you don't you might find your current area of expertise obsolete in a relatively short time." (Ken Blanchard, "Accept Innovation or Perish," Inside Guide, October, 1989, 9.) Politicians

While Canadians suffered through the worst recession since the Dirty '30s, lost their jobs and businesses and struggled to keep their heads above water, the country's leaders, in their superior wisdom, pursued their magnificent obsession. (Joan Bryden, "Fixation Created Two New Solitudes: Them vs. Us," Sun, Oct. 27, 1992. The politicians had their attention fixed on constitutional reform when people were worried about the state of the economy. They were revealed as being out-of-touch.)

Profitability - See Business Ethics

Robots

A robot [is] a "reprogrammable, multi-functional manipulator designed to move objects through variable programmed motions for the performance of a variety of tasks." (Ministry of Industry, Trade and Technology, "Flexible Automation Equipment" report cited in "Canada Lags in Factory Automation," Globe and Mail, 8 Dec. 1985.)

Safety Net

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all- out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Safety net - Attitude of Business

As the Chairperson of the Canadian Manufacturers' Association told Ottawa at the time: "If a policy is anti-competitive, dump it."

And that 'dumping' is precisely what's happened. Social programs have been gutted. Family allowance was eliminated. Public pensions have been cut back and are no longer universal. Welfare has been slashed. Health care and post-secondary education are being robbed of federal dollars. The result? The gradual ratcheting down of our social standards and programs. (“Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Cutting social programs is one big part of the low-wage economic strategy of free trade. The cuts are meant to weaken support for people so much that they'll be desperate to accept any job no matter how low the pay or how poor the working conditions. The corporations call it becoming 'competitive'. But more and more Canadians are seeing it for what it really is -- an all- out attack on our quality of life. ("Our Shrinking Social Safety Net: 'If It's Anti-Competitive, Dump It,'" Canadian Perspectives, Summer 1996, n.p.)

Social Darwinism

"Social Darwinism is respectable again." (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15.)

"In the 90s, let's do lunch may have a slightly different meaning." (BC Tel ad on KVOS TV, Nov. 8, 1991.)

Stress - See Costs of Technology - Stress

Technological Drivers - See Drivers of Technology

Technological Restructuring

The cost-cutting electronic revolution is one reason why economic recovery in the U.S. has yielded 3.5 million fewer jobs than past recoveries. Employers are investing in systems, not workers. (Mark Wilson, "Triple bar [code] decks jobs: code data cuts cost for retailer" Province, Oct. 14, 1993.

Technology - Forecasts

The world of technology, and information technology in particular, will continue to experience rapid change and the persistent convergence of computing and telecommunications. These phenomena will continue to present major opportunities for increased productivity and competitive advantage for those with the courage to be proactive. (C.D. Sadleir, Vice President, Computing & Communications, University of Toronto, "New Decade Old Problems," Inside Guide, Winter 1989, 95.)

Trade War - With Japanese

"Getting tough with Japan." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 80.)

"There seems to be nothing the Japanese cannot invent, cannot make more quickly and efficiently than the West." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 83.)

"It is clear that Japan is an enemy that is not playing the game and that there is an absolute desire to conquer the world." (Edith Cresson in Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 83.)

"I've always thought that Japan-bashing was really a political cover for the internal weakness of the basher." (PM Brian Mulroney in Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991,, 83.)

"Complaints that they live too frugally and work too hard are typically viewed by the Japanese as little more than the cries of affluent, ill-disciplined and even incompetent children." (Gregg Buchanan and Charles Macli, "Getting Touch with Japan," Report on Business Magazine, October, 1991, 88.)

Training

To get by in the age of computers you need computer training. (Cameron Smith, "The Need to Know," Vancouver Sun, 27 Dec. 1989, D1.)

In today's competitive business world, it's vital that organizations not only use new technology in the production of their product, but ensure that their employees are provided with the skills they need to perform to the maximum of their ability. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

"Businesses now need people to be skilled in order to move with the time," said Business and industry Service Centre vice-president Kris Gataveckas in 1989. (Monica Frangini, "Retraining Centre Opens," Canadian Computing, 21 De. 1989, 13.)

New Brunswick Premier Frank McKenna calls it Guaranteed Annual Employment the name of a program that has a structure, an ambitious goal but not yet a life. Under McKenna's plan, no person requiring social services in the prov9ince would ever again have to wend their way through the often-bewildering array of federal and provincial assistance programs. Instead, explained McKenna in an interview with Maclean's, "the unemployed could start with two certainties: all their government needs would be centred in one place, and there would be jobs for everyone able to work." ... By lumping together federal UI, provincial welfare and other jointb income assistance and job creation programs if Ottawa agrees to relinquish its jurisdiction in these matters New Brunswick would then have the money to offer jobs or career training to any interested and capable resident who is without work. Many of these jobs would be seasonal, physical and overseen directly by the provincial government. But the overall goal, says the premier, would be to "allow the unemployed to either upgrade their skills in their own field, to study other fields or to simply give them interim jobs that would allow them to keep their dignity." (Anthony Wilson-Smith, "Changing the Rules," Maclean's, 2 Aug. 1993, 36-7.)

The employees who are going to grow and advance in the 21st century are those who are taking an active role in broadening their skills today. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

"I'm into job retention," says Karen Hayward of Xerox Canada. "In just the past 24 hours, I

went on a three-hour training session on my own time, read Computing Canada for 40 minutes before bed and attended a one-hour breakfast seminar." (Report on Business Magazine, April 1993, 46.)

Unemployment Rate for B.C.

British Columbia's unemployment rate climbed to a four-year high of 9.7 per cent last month - from 9.3 in January - despite an increase of 8,600 jobs throughout the province, Statistics Canada reported Friday.

The federal agency said the rise in new jobs was offset by the fact that 18,500 more B.C. residents began to look for work in February, leading to the higher overall jobless rate. ...

Business Council of B.C. vice-president Jock Finlayson noted most job creation in B.C. now takes place in the self-employed sector. The number of self-employed workers in the province has grown by 17,000 while the number of paid workers has declined by 26,000.

"Unless something changes very quickly in B.C.'s economic outlook, the trend is for very weak employment growth," Finlayson said. (Bruce Constantineau, "Jobless Rate Hits 4-year High," Vancouver Sun, 14 March 1998, A2.)

Unemployment Rate for Canada

[Unemployment rose from 4.2 in the 1950s, to 5.1 in the 1960s, 6.7 in the 1970s, and 9.3 in the 1980s.] (Figures derived from chart in Macleans, Aug. 2, 1993, 30.)

[In 1993 the Conference Board of Canada forecasted it to 11.3 for 1993, 11.0 for 1994, and 10.5 for 1995.] (Province, 21 Oct. 1993, A51.)

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. ("Trade Warriors," Canadian Business, June 1993, 23.)

Unemployment has now hovered above 9 per cent for 76 consecutive months, the worst stretch since the depression of the 1930s. ... [John] Lester [senior economist at CIBC Wood Gundy Securities Inc. in Toronto] said the pause in the expansion of the job market means there won't be enough growth in disposable incomes to keep consumers in a spending mood. (Barrie Mckenna, "Jobless Rate Stuck in High Gear," Globe and Mail, 8 Feb. 1997, A1.)

The unemployment rate now stands at about 9.3 per cent, roughly four percentage points above the figure reported for the United States. At a little over five per cent, the U.S. is generally agreed to be as close to full employment as a North American economy is likely to get. (Andrew Coyne, "Canadian Focus on Unemployment Rate a 'Natural Obsession,'" Ottawa Citizen, 8 April 1997, A12.)

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. ("60,000 Students to Get $120 million for Summer Jobs,” Vancouver Sun, 20 Feb. 1998, A13.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years,” Vancouver Sun, 21 Feb. 1998, E1-2.)

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising question about whether the shopping spree from consumer can continue. (Bruce Constantineau, "Canadian sales ring up biggest salesincrease in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Nationally, the unemployment rate fell to 8.6 per cent from 8.9 per cent in January [1998]. (Bruce Constantineau, "Jobless Rate Hits 4-Year High," Vancouver Sun, 14 Mar. 1998, A1.)

B.C. has fewer secretaries, typists and telephone operators than it had at the beginning of the '90s, but more computer systems analysts.

New numbers from the 1996 census released by Statistics Canada show technology is having a huge impact on the workplace. Computers are killing off some jobs and creating others.

The census figures match the image of the '90s as the information age. While secretaries are being replaced by word processors and voice mail, the number of library clerks has soared.

And business leaders' talk about a service economy is backed up -- at least at the low end of the wage scale -- by a giant increase in demand for customer service clerks.

... The numbers show there were 43,000 secretaries in the province in 1996, a drop of 14 per cent since the 1991 census.

The number of typists and word-processing operators dropped 39 per cent, to 2,500, and the number of telephone operators dropped 37 per cent to 1,300.

Those three job categories -- all largely filled by women -- have been heavily hit by technology in the 1990s.

In 1991, being a secretary was the most common job for Canadian women. In 1996, more women reported themselves as retail salespersons than any other occupation, with secretary dropping to second place. (Tom Barrett, "Computers Behind B.C.'s Reshaped Workplace," Vancouver Sun, 20 March 1998, A1.)

Unemployment - Unemployment Rate for U.S.A.

[The United States has] a 4.9-per-cent jobless rate. (Peter Hadekel, "U.S.'s Pro-Growth Policies Pay Off," Montreal gazette, 21 May 1997, C1.)

Unemployment - Due to Technological Restructuring

Changing technology has had a dramatic effect on the kinds of jobs people do. The introduction of new technologies has considerably reduced employment levels. Most companies reported that market developments and the resultant industry reactions, such as layoffs, acquisitions and mergers, reduced employment levels much more dramatically than the adoption of new technologies. In this respect, technology has tended to be evolutionary rather than revolutionary in its application and its impact on employment. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

The mutually reinforcing drive towards improvements in productivity and product quality are forcing manufacturers to adopt the new technologies throughout the organization. The result is better quality with fewer workers. Even where sales and market growth are buoyant, the productivity imperative means that employment is likely to grow slowly at best. (Canadian Occupational Projection System, Electrical and Electronics Manufacturing Industry. Human Resources Study. Ottawa: MSSC, 1987, vii.)

[IBM] is looking to cut 14,000 names from the payroll. And this after Aker's pay and bonus has soared 185% in 1990, to more than $2.2 million. (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 16.)

Operators, technicians and clerks will be heavily hit, the [Bell Canada] executive said. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10. Bell Canada lays off 10,000.)

This is an era of downsizing.... Employees in virtually any company should operate as if downsizing is around the corner. (Ken Lloyd, "The Workplace," Vancouver Sun, 14 June 1996, C10.)

Unemployment - Its Impact on Tax Revenues and Consumer Demand

The structural shifts in the Canadian economy have already eroded many of the white-collar, middle management jobs to which university graduates have traditionally aspired. People aged 15 to 24 are currently facing unemployment rates of more than 20 per cent, well above the national average of 10.8 per cent. And that trend has caused growing concern among economists because it foreshadows weak consumer demand as well as an eroding tax base to maintain social programs. (Scot Blythe, "Generation Xed," Maclean's, 2 Aug. 1993, 35.)

Governments have little room to increase spending or reduce taxes. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 34.)

Ottawa has already announced that its deficit for the first four months of its fiscal year [1993] was off track by $2.9 billion because of sagging tax revenues. (Province, 1993. Fragment.)

"We have been in quite a down trend in personal consumption patterns," said Vancouver economist George Pedersson. "So if the job growth rate slows down and the labor force growth rate keeps going up, unemployment will continue to rise -- possibly to around 11 per cent." (Bruce Constantineau, "B.C. Job Growth Slows as Labor Force Rises," Vancouver Sun, 9 Nov. 1996, B1.)

Tax burden and levels of unemployment are related. Around the world, national tax burdens are progressively being shifted away from mobile afctors of production such as business and skilled workers, and onto consumption, property and less mobile workers. Canada's high tax burden is thus contributing to our inexcusable unemployment rate, especially among those at the bottom of the wage scale. ("Canadian taxes, a growing concern,' Globe & Mail, 9 Sept. 1997.)

But [buoyant] sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising questions about whether the shopping spree by consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E1-2.)

The reports of the past week reveal "awesome strength for the Canadian economy," noted Sherry Cooper, chief economist at investment firm Nesbitt Burns. who predicted that the economy expanded by one per cent in December alone, the strongest monthly expansion in 15 years. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Earlier this week, StatsCan reported a surprising year-end jump in the country's merchandise trade surplus, rising factory shipments, a record year for corporate profits and robust increases in wholesale trade.

But sales since the second half of 1996 "have largely come from increased consumer debt rather than from rising incomes," StatsCan said, raising questions about whether the shopping spree from consumers can continue. (Bruce Constantineau, "Canadian sales ring up biggest sales increase in nearly 10 years," Vancouver Sun, 21 Feb. 1998, E2.)

Unemployment - Jobless Recoveries

Nine months after the recession is supposed to have ended, stagnant sales and wrenching structural change are forcing companies across the country to downsize, freeze wages, lay off workers or go bankrupt. (Greg Ip, "Recovery on Hold," Financial Post, December 16, 1991,1.)

Battered by the recession and the competitive pressures of free trade and rapid technological change, most Canadian businesses are reluctant to rehire employees - even as their balance sheets improve. As the pace of economic activity picks up, many companies are still opting to pay overtime charges to existing, permanent workers or to contract for the services of part-time workers who do not require employee benefit packages and who can more easily be terminated. (Scot Blythe, "Generation Xed," Maclean's, 2 Aug. 1993, 35.)

There used to be an expectation, [Angus Reid official Darrell Bricker] says, that when the economy improved jobs would be created.

"People are coming to terms with the fact that you can have a jobless recovery. This is something that's really a recent phenomenon." (Eric Beauchesne, "Canadians Seem Resigned to Fewer Jobs, Poll Finds," Vancouver Sun, 5 July 1996, A9.)

Exports are up, largely due to a low dollar, but the so-called 'boom' hasn't resulted in many jobs. Why?

It's because the big growth in exports has been in machinery and equipment, highly automated industries that employ few workers. In other sectors, free trade has meant plant closures and major job losses. ("Jobs, Jobs, Jobs ... Going, Going, Gone!" Canadian Perspectives, Summer 1996, n.p.)

Unemployment - "Makes us More Competitive"

Canada now has 1.5 million unemployed. Job creation is picking up a bit, but layoffs continue. Does this indicate a desparately ill economy? Not at all. In fact, a major factor in the layoffs is an economic restructuring that is already pushing up productivity levels and enabling Canada to compete in selling its products around the world. It's a painful process, especially for those who lose their jobs. But the result will be industries that are equal to or better than their counterparts anywhere in the world. One of the side effects of the layoffs has been a boom in entrepreneurship, as former employees of large and medium-sized companies become proprietors of their own small businesses, in turn helping to make Canada more efficient. ("Trade Warriors." (Canadian Business, June 1993, 23.)

Unemployment - Position of World Governments

At the Tokyo economic summit in June [1993], the G-7 leaders issued a ringing declaration that said: "We are particularly concerned about the level of unemployment. More than 23 million people are unemployed in our countries; that is unacceptable." (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 34.)

Unemployment - Ratchet Effect

Ever since the 1950s, policy-makers in Canada and other Western industrial countries have assumed that there is a trade-off between inflation and unemployment. But [Pierre Fortin, professor of economics at University of Quebec in Montreal] says that, over time, it is taking higher and higher doses of unemployment to bring the inflation rate down. He calls it a "ratchet effect " and notes that Canada's average unemployment rate in each decade has climbed steadily since the end of the war. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 34.)

Unemployment - Technology is Capturing Work

Information technology is revolutionizing business, but there's growing concern about workers paying the price with their jobs.

That's the view expressed by John Rockart, a senior lecturer with the Sloan school of management at Massachusetts Institute of Technology.

Information technology is essential to sharpening the North American response to international competition, but executives are more worried than ever about job losses, Rockart said during a visit to Vancouver to talk about information technology.

"This competition is forcing us to do things with fewer people and that is an issue which should concern management," Rockart said.

"I have talked recently with six very senior executives who all shared the same worry about jobs.

"They are concerned that information technology, forced along by the pace of international competition, will take jobs out of the workplace. They are concerned about unemployment."

An example of job shrinkage through uses of computers is the accounts-payable department of the Ford Motor Co., in the U.S. Employee numbers dropped from 500 to 10 after Ford studied what Mazda was doing in this area. ...

Rockart said the information flows available to corporations have allowed them to strip out layers of management, thrust more decision-making on to front-line troops, slash inventory costs, improve service and product quality and help democratize the workplace. (Mark Wilson, "Information Technology Costs Jobs," Vancouver Province, 30 Sept. 1993, A47.) Triple bar decks jobs. Code data cuts cost for retailer. (Mark Wilson, "Triple bar [code] decks jobs: code data cuts cost for retailer" Province, Oct. 14, 1993.)

Unemployment - Trauma

Despite widespread layoffs over the past three years, psychologists and other experts note that most employees, initially at least, still have difficulty coping with the loss of their jobs. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 33.)

It's human nature not to deal with corporate death until your own looms. (Margot Gibb-Clark, "Why 55,000 workers have to cause to worry," Globe and Mail, 2 May 1995, A10.)

Unemployment - Youth

Executives such as the Royal Bank's [Vice-President James] Gannon express profound concern for the future of the country's graduates. "I hope students do not become disillusioned and give up or drop out, said Gannon. "Well-educated graduates are the key to our future. For the thousands who find themselves lost in the difficult transition from school to career, that sentiment may be cold comfort in hard times. (Patricia Chisholm, "The Graduates: Out of School, Out of Work," Macleans, 22 June 1992.)

Canadian labour markets improved considerably last year, pushing down the unemployment rate below nine per cent for the first time in more than seven years. But youth unemployment still remains at its record-high levels. ("60,000 Students to Get $120 million for Summer Jobs," Vancouver Sun, 20 Feb. 1998, A13.)

They're young, out of school, out of work and out of the labour market -- and there are more than 200,000 of them.

Being out of sight, these 15- to 24-year-olds are also out of mind, the Canadian Imperial Bank of Commerce says in a report released Thursday. They don't show up in the official jobless numbers because they aren't registered as looking for work and as such their problems are not often the focus of government policy-makers.

These are the young people most at risk of being left behind by a job market that's increasingly demanding higher-skilled workers, says bank economist Benny Tal, author of the report. If they are, all Canadians will pay the price in both higher social and economic costs, he warned. ...

What makes these young people such a concern is that they aren't getting the education or knowledge prized in today's economy, nor are they acquiring work experience or skills that would come from a job or job training. And they're not even looking for work -- probably because many believe no jobs are available.

"The more than 200,000 youths out of school and not registered in the labour market are at particular risk," the report says. "But when these youths are added to the similar numbers of youths registered as unemployed and also out of school, the total number of young people at risk reaches 450,000 or 11 per cent of all Canadian youths."

"These youths face a harsh job environment, real entry barriers and a complex school-to- work transition.," Tal said. "While the unemployment rate among on-student youth is expected to decline in 1998, then problem will persist, with a significant proportion of this group likely to remain unemployed or out of the labor market."

Tal rejected the argument that has been made recently by some analysts: that youth unemployment has always been high and the problem is no more serious today than in the past.


"Young people are facing problems that their parents never faced. You really need skills and if you don't acquire them, you will be left behind."

... About one in four 15- to 24-year olds has never held a job, more than double the proportion in 1989, which was before the recession and the ensuing jobless recovery that robbed many of the opportunity to gain work experience and kept many in school.

"The consequences of this are serious," the report warns. It notes that the average spell of unemployment among youths just graduated from school is currently about 21 weeks -- eight weeks longer than the average period of unemployment in 1989.

Underemployment is also a serious problem, the report argues Part-time employment among young people is high and involuntary part-time employment, where a person wants but can't find full-time work, has been rising. (Eric Beauchesne, "Governments Urged to Tackle Massive Youth-Labour Issues," Vancouver Sun, 20 March 1998, A10.)

Unemployment - Youth and Unions

Unions are struggling to find a way to recruit the next generation of workers, and to make the legacy of union struggles relevant for those trapped in low-wage "McJobs."

... Of the youngest workers, aged 15 to 24, only 11 per cent-- just 190,000 in all -- currently belong to unions, according to a Stats Can report released this week. In comparison, 44 per cent of workers aged 45 to 54 -- more than one million strong -- are unionized, mots of those in traditional blue collar or public sector jobs. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C1.)

According to Statistics Canada:

  • Almost 50 per cent of 15-to-24 year olds with jobs are working part-time, compared to 20

per cent just seven years ago. Among working non-students, 20 per cent held part-time jobs in 1996, compared to just six per cent in 1976.

  • About 500,000 jobs for young people disappeared between 1989 and 1996, creating a

youth unemployment rate of over 16 per cent. Counting those who've quit looking for work, the actual unemployment rate is estimated at more than 25 per cent.

  • Real earnings for young men aged 17 to 24, adjusting or inflation, dropped by almost 20

per cent between 1979 and 1992. In comparison, real incomes for those over 45 rose by more ghan six per cent.

Numbers like these, in theory, should be producing plenty of angry and disillusioned young people eager to sign a union card and fight for higher wages and steadier work. But it hasn't worked out that way. (Edward Alden, "The New Face of Labor," Vancouver Sun, 30 Aug. 1997, C4.)

Unemployment - White-collar Jobs

Even highly-educated and high-ranking professionals say that it is now difficult for them to find secure jobs. (John Daly, "Will They Find Work in the 90s?" Maclean's, 2 Aug. 1993, 33.)

Unskilled Workers - See Employment Trends - Fate of Unskilled Workers

Workers - Devaluation

"Only yesterday, employees were held to be the most valued assets of a corporation. Then the recession began to do its work. Today the job market is awash with curricula vitae, and people don't seem so valuable any more. Where are they now, the workers who were invited to conceive and embrace a company vision? Many are gone, swept up in the dehumanizing process of 'body-count reductions.'" (David Olive, "The New Hard Line," Report on Business Magazine, October, 1991, 15)