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The cost of money has changed the organisational world in very fundamental ways. Management practice too often fails to reflect those changes. Until managers begin to understand the magnitude of these changes America will continue to be marginally productive in the face of economic competitors. American managers should make non‐managerial employees partners in an effort to create productive, effective organisations. Work must be planned at levels of detail which allow individuals and groups to know precisely what is expected of them, and what conditions will exist when they have performed them satisfactorily. Major challenges for human resource development and a new paradigm for workplace leadership are discussed.

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