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Many American corporations, for various reasons, have performed poorly and are now facing economic problems. However, the number of managers has increased dramatically. Their size, diversification,planning strategies, government regulations, new technologies, lack of expertise, and mistrust have resulted in an abundance of managerial positions. Companies are now reducing the number of middle managers. This down‐sizing has been accomplished through a number of techniques. Down‐sizing has not solved all the economic problems and it has created new ones. Trainers are having to contend with retraining managers who are not committed to corporate goals. They fear job loss, avoid risk taking, and are not easily convinced that training will have long‐term benefits. In spite of down‐sizing, American corporations are putting more emphasis on training. However, trainers must demonstrate their critical role if they are to survive in shrinking organisations. Ideas for survival are provided and research questions are suggested.

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