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Globalisation and increased competition bring with them many benefits for business, consumers and the economy. But they can also result in the restructuring of industries not able to compete with changing economic markets. In the past, Australia has witnessed restructuring in many high-profile businesses, especially those in its manufacturing sector, for example, BHP Steel and Mitsubishi Motors and, more recently, General Motors Holden, Ford, and Toyota. The human cost of this restructuring is a displaced worker group, currently a growing segment of the Australian workforce. But what might help displaced workers to find new jobs following restructuring? In this research, Victor Callan and Kaye Bowman reviewed past research and undertook four case studies to identify evidence-based practices that lead to successful skills transfer, reskilling, training and the attainment of new jobs for older workers displaced from often lower-skilled jobs in Australian manufacturing industries. The case studies were undertaken in areas of Australia where there has been a significant impact on the local community with a large employer undergoing major restructuring, resulting in a large number of displaced workers. The case studies show that, while displacement impacts all affected workers, there are significant challenges for older workers facing unemployment from industries where larger proportions of the workforce have lower skills, few formal qualifications, and poorer literacy and numeracy skills. Gaining employment after restructuring is difficult for many displaced workers, particularly if they are older and lower-skilled. This research highlights that early engagement of workers with support and training services, before displacement occurs, is crucial. Key messages include the following: (1) While training is important, it is just one component in any package or program designed to reduce the impacts of industry restructuring on individuals; (2) A coordinated approach to the provision of training and support is critical. Training is more likely to be effective when training providers and support agencies partner to ensure displaced workers access upfront career counselling, training for in-demand skills and follow-up assistance with job search and attainment; and (3) Access to training resources for small numbers of displaced employees in small-to-medium-sized enterprises (SME) companies is more challenging than for displaced older workers from large firms, who are more likely to be recognised and supported by government interventions. How this impacts employment outcomes for displaced older workers from small-to-medium-sized enterprises (SME) firms in the longer-term needs further investigation. Interview questions that are based on a draft working model that was developed through a literature review are contained in the appendix. [For "Helping Displaced Older Workers Get Back into Employment: Good Practice Guide," see ED156221. ]

This good practice guide is based on the report "Industry Restructuring and Job Loss: Helping Older Workers Get Back into Employment" by Victor J. Callan and Kaye Bowman. The aim of the research was to identify evidence-based practices that led to successful skills transfer, re-skilling, training and the attainment of new jobs for older workers displaced from often lower-skilled jobs in the manufacturing industries. This guide informs employers, employment placement agencies and related support services, training providers and overall coordinating agencies in the design of programs that help displaced older workers find new jobs. Based on a review of past research and four Australian case studies, Callan and Bowman investigated the type and impact of the approaches used to assist displaced older workers in regions where industry restructuring has occurred.[For the research report: "Industry Restructuring and Job Loss: Helping Older Workers Get Back into Employment. Research Report" see ED56122.]

Work practices in the meat-processing industry have changed in recent years. The industry has moved away from workers dressing a whole carcass towards a chain-based system, with each worker performing a single task along a moving production line. The nature of the meat-processing workforce has also changed. It is no longer dominated by seasonal but longer-term workers, usually white and male. It is now diverse and often characterised by workers with low levels of post-secondary education and literacy. Significant pools of labour are temporary (417 visa holders, backpackers and grey nomads), contributing to high levels of staff turnover. This report investigates what these significant changes have meant for training in the industry. Key messages of this report include: (1) Training systems have been adapted to accommodate the new work systems, with training now oriented to on-the-job induction and learning of single tasks; (2) The case studies demonstrated the importance of quality supervision and the building of a safe and supportive culture in the workplace. Improved supervisor training, as well as practices that support workers as teams and individuals, result in safer and less stressful places to work; (3) The training systems accommodate rather than prevent the high rates of labour turnover in the sector. The meat-processing industry employs many workers who are entering or re-entering the paid labour force, and many of these workers move onto other areas of the paid labour market. This report arises from the second year of a three-year program of research on training and workforce development in industries which are characterised as low-skill entry points to the labour market. Appendices include: (1) Institutional structure of meat-processing sector; and (2) The ownership structure and business model used at each case study site. (Contains 1 table and 3 footnotes.)

The possible impact of technological and structural change on employment in the European Union (EU) over the next 20 years was examined through an exploration of the following alternative policy-driven scenarios: (1) business as usual; (2) concentrated technology policy (increases in innovation and research and development [R&D] efforts are concentrated on advanced technology); (3) diversified technology policy (increases in innovation and R&D efforts are allocated to sectors currently demonstrating strong performance); and (4) uniform technology policy (innovation and R&D spending are increased uniformly throughout the economy). The study demonstrated that technological progress is a necessary though insufficient condition for the EU to achieve high economic growth and higher employment levels. Rather than threatening employment at the EU level, the increased productivity resulting from technological progress appeared to be a driver for increased competitiveness and overall economic growth. Other conclusions emerging from the study were as follows: (1) technological change will increase the demand for highly skilled workers; (2) emerging technologies will both respond to changes in work organization and further raise requirements for flexibility in work organization; and (3) technology policy strategies aimed at accelerating technological progress should lead to positive results and further economic and employment growth. (Twenty tables/figures are included. An overview of the study methodology and a bibliography listing 29 references are appended.) (MN)

A proposal has been made that calls for the development and use of training indicators to improve planning for vocational education and training (VET) in Australia. The idea behind the proposal is to develop indicators to inform policymakers and providers in Australia about changes in the nature of training demand flowing from demographic changes and labor market adjustments related to new areas of training demand or related to industries undergoing restructuring because of changes occurring in the economy. The term "training indicators" is taken to mean functional suites of quantitative and qualitative indicators of current or future VET supply and demand and potentially includes economic, social, labor market, training, and other indicators that governments, enterprises, training providers, or individuals may bring together to guide decisions about investments for skill training, especially at the industry, occupational, regional, and course levels. A selection of nine training demand indicators for a nominal industry (e.g., output and productivity) and seven training supply indicators for a nominal industry (e.g., VET funding and trends), discipline, or field of study were proposed along with nine derived measures for comparing demand to supply. The indicators were offered as suitable measures to assess prospects and performance in a VET system under policy and resource stresses. (MN)

Trends in job placement in Europe and the effects of advances in information and communication technologies on job placement practices were examined through case studies of France, Germany, the Netherlands, and the United Kingdom. The case studies revealed that the market shares of public employment services (PES) are generally higher than those of private employment services in France, Germany, and the United Kingdom. In the Netherlands, however, the market share of private employment services, especially temporary work agencies, may have already overtaken that of PES. Significant empirical discrepancies emerged from the comparison of PES market shares in Germany, the Netherlands, and the United Kingdom. The gross performance indicators of PES have shown improvement over time, which suggests that essential changes within the PES have occurred. Especially in France and the United Kingdom, greater customer satisfaction with PES and the provision of more comprehensive high-quality services have led to considerable gains in efficiency. The restructuring of enterprises and its impact on personnel management are requiring new forms of service from PES and private employment services. The rapid evolution of information and communication technologies is also having a significant impact on placement services. (Contains 21 tables/figures and 35 references.) (MN)

Changing occupational profiles in the hotel industry in France, Italy, and Spain were examined in case studies that included interviews with hotel managers, human resource managers, and individuals employed in hotel occupations identified as new or entailing new skills. The study focused on the following topics: (1) changes in the hotel industry (increasing competitiveness and globalization, consumer expectations, quality, and introduction of new technologies); (2) the impact of those changes on organizations and occupational skills; and (3) new occupational skill requirements and the role of training. The study established that the human factor is playing a key role in making the hotel industry competitive and improving its quality. Better qualifications are being required in almost all operational areas and especially for profiles in management, accommodation management, catering, administration, technical services, and events and administration. It was concluded that, in all three countries, training schemes need to be designed to the following groups of competencies that apply to all the occupational profiles analyzed: (1) general skills/knowledge, including speaking and writing skills, eagerness to continue learning, problem-solving skills, and attention to quality; (2) social skills; (3) technological skills; and (4) business management and marketing skills. (The survey instruments are appended.) (MN)

This document, which is intended to stimulate debate among vocational education researchers, policymakers, and practitioners, provides a comprehensive overview of the development of vocational training policy at the European level over the past 40 years. The following are among the topics discussed in the document's eight chapters: (1) moving from a common policy to a European Community policy; (2) moving from policy to practice to meet the challenge of change; (3) facilitating adaptation to industrial change via training and retraining; (4) improving initial and continuing training to facilitate vocational integration and reintegration into the labor market; (5) facilitating access to vocational training, and encouraging the mobility of trainers/trainees and young people; (6) stimulating cooperation on training between educational or training establishments and firms through work-related vocational training and apprenticeships; (7) developing exchanges of information and experience on issues common to Member States' training systems; and (8) future challenges for vocational training (the nature of change, the issues at stake, development of the acquis communautaire--body of European Community law). Appended are information about the sources of data used in the analysis and a time line of development of the acquis communautaire. (Contains 40 references and 56 graphs/tables.) (MN)

This study examines the significant role of computers in the transformation of the Canadian employment structure. An executive summary appears in English and French. Following an introduction, Section 2 discusses how the role of computerization of the employment structure is viewed in the literature. Section 3 presents an overview of past developments in computer technology leading up to the contemporary microcomputer. Section 4 describes important trends (capital intensity and computer intensity) in the evolution of the Canadian industrial structure over the last few decades and proposes an industrial taxonomy on which to base analysis. Section 5 examines how these intensity trends affect different categories of employment: management, knowledge, data, service, and goods workers. Section 6 develops a methodology inspired from the production function framework of Berman, Bound, and Griliches (1993) and explains the data used. The remainder of the paper presents empirical results in these three sections. Section 7 deals with relative wages. Section 8 analyzes the capital/skill complementarity. Section 9 discusses the association of computers with different categories of workers. Section 10 includes a summary of the main findings, outlines some broad implications, and indicates avenues for further research. Appendixes contain descriptive statistics by industry in 1971 and 1991, and a 51-item bibliography. (YLB)

Requirements for vocational skills in the engineering industry in Modena, Italy, and Vienna, Austria, were studied. In Modena, employees of a representative sample of 90 small, medium, and large firms in the mechanical processing, agricultural machinery, and sports car manufacturing sectors were interviewed. In Vienna, data were collected through 8 case studies and interviews with 14 industry experts and national-level educational officials, 30 human resource management experts in 25 firms, and 20 individuals responsible for technical areas in representative firms. In 1991-1995, the size of Vienna's engineering production and car manufacturing sector decreased sharply (from 1,080 firms employing 25,822 individuals to 145 firms employing 12,130 individuals). In Modena, the sector shrank only slightly (from 154 firms employing 8,447 individuals to 136 firms employing 8,104 individuals). The following trends characterized Vienna's engineering production and car manufacturing industry: development of problem solving; increase in worker responsibilities and level of skills required; greater production orientation; emphasis on formalized knowledge versus experience; and acquisition of a globalization strategy. In Modena, the following trends were noted: flexible specialization; management of innovative function areas and integrated processes; emphasis on discovery, multifunctionality, and problem solving; rise in technical and specialist knowledge; and greater quality orientation. (Contains 27 tables) (MN)

Over the past 2 decades, the inflation-adjusted median weekly earnings of full-time employed males and females decreased by 31% and 13%, respectively, and the deterioration in the real weekly earnings of young adults (ages 18-24) shows no signs of abatement. Male high school dropouts and graduates with no postsecondary schooling experienced the most severe earnings losses. Earnings declines among men with no postsecondary schooling were quite substantial among White, non-Hispanics, and Blacks and Hispanics. The steep decline in young adult earnings, especially among men, appears to be related primarily to labor demand and institutional factors rather than supply-side explanations (except for the rise in the pool of unskilled, immigrant labor). Compared to high school students in the early 1970s, young adults employed in 1993 had completed more years of schooling, were at least as proficient in math and reading, and had more years of potential work experience. However, those educational gains failed to result in the predicted improvement in real earnings. Federal government efforts to address youth labor market problems through programs such as school-to-work and employment and training for disadvantaged youth have produced relatively few positive impacts on participants' postprogram employment earnings. Contains 34 tables/charts and 60 endnotes. (MN)

The feasibility of policies encouraging more part-time employment as a cure for unemployment in Germany was examined through a comparison of the employment policies and labor markets of selected Organization for Economic Development (OECD) countries and the United States. OECD labor force statistics for the years 1972-1992 were analyzed to determine the following: patterns of part-time employment among men and women; the effect of part-time employment on the labor market; and factors determining the evolution of part-time work (structural changes in various sectors of the economy and gender-specific characteristics and behavioral aspects of employment). On the basis of the international comparison, it was concluded that a considerable potential for part-time work is still lying dormant in Germany. A shift-share analysis established that even anticipated structural shifts toward a service society and the expected increase in labor force participation by females will not, by themselves, drastically expand part-time work. Several policy approaches to promoting part-time work were suggested, including making child care and parental leave more available and offering financial incentives to encourage the creation of more part-time jobs. (A description of the shift-share analysis procedure is appended, and the 16 papers published in this series are listed.) (MN)

Between 1992 and 1995, 2,117 nonmanagerial employers in 31 public and private sector organizations throughout the United Kingdom were interviewed for the following purposes: analyzing the need for training and development (T&D); obtaining feedback on existing training provision; identifying barriers to T&D that might affect individuals' ability to participate in training and adapt to change; and establishing a partnership approach to the T&D of nonmanagerial employees. Many of those interviewed saw a need for additional training in the following areas: written skills (44%); oral skills (26%); math skills (22%), and computer skills (39%). A majority of interviewees stated that their training had been limited and that, although training opportunities were improving somewhat, many difficulties and barriers to training remained. Among the other concerns/problems identified were the following: poor initial introduction to the job and inadequate on-the-job training; no tradition of training; low expectations by management of employees' capabilities; poor communication skills because of poor experiences at school and deterioration of skills through lack of use; and lack of confidence in ability to cope in learning situation. The interview findings were examined in the broader context of the challenge of providing training in an atmosphere of increasing competition. (Contains 10 references.) (MN)

Wisconsin is the country's leading manufacturer of small engines, and the network of companies and suppliers constituting the small engine industry accounts for more than 5% of the state's entire manufacturing base. For the past 15 years, the industry has been rocked by intensified international competition and rapid technological advancement. A comparative case study of work reorganization in Wisconsin's small engine industry was conducted. The study focused on the following: the effects of changing labor-management relationships and technological advances on the market focus and work organization of small engine manufacturing; low-wage versus high-skill business strategies; and diffusion of high-performance practices. In view of the study findings, it was recommended that the Wisconsin Technical College System take the following actions: (1) support curriculum development projects associated with the development of skills standards benchmarked to advanced industry practices; and (2) use extension services to extend the coverage of skills standards and wage norms from industry leaders to the rest of the sector. A three-tiered system of manufacturing certificates to document mastery of traditional basic, applied occupational, and advanced occupational skills was proposed along with a six-level model for a mature occupational training system in durable goods manufacturing was proposed. (MN)

The transformation of Singapore from a stagnating colonial port city in the late 1950s into a newly industrialized city-state in the early 1990s was the outcome of planned adjustments to changing internal and external conditions. Training and retraining programs played a role in these adjustments. Although full employment prevailed in 1979, the government was concerned about the labor displacement impact of its restructuring program. Beginning in 1980, both the Institute of Technical Education and the National Productivity Board developed a variety of adult education programs to meet the diverse education and training needs of workers. Six were of particular importance to the industrial restructuring strategy: Basic Education for Skills Training, Worker Improvement through Secondary Education, Modular Skills Training, Core Skills for Effectiveness and Change, Training Initiative for Mature Employees, and FAST FORWARD. Their positive contributions were a shift to a more highly skilled work force, rise in average wages, full employment, and alternative employment for workers affected by structural change. Lessons from Singapore's experience include the following: a flexible, responsive training system that facilitates skill acquisition; the development of effective institutions to guide the establishment of an employer-based training system as part of a total human resource development strategy; and Singapore's approach to problems which combines a strong belief in state action and a belief in market forces and competition. (Appendixes include 25 notes and 4 tables. Contains 19 references.) (YLB)

This report by the Blue Ribbon Task Force on Wisconsin's Telecommunications Infrastructure considers infrastructure to be the common network that connects individual residences, businesses, and agencies, rather than the individual systems and equipment themselves. The task force recognizes that advances in telecommunications technologies and changes in the telecommunications industry have outpaced Wisconsin's ability to ensure infrastructure development through traditional regulatory and administrative means. Solving the problems of creating the most advanced telecommunications network across the state in an environment of rapid and continuing change is vital to economic and social development. The task force received input from leaders of the state's telecommunications industries and potential users in arriving at recommendations based on the premise that a robust communications marketplace is most likely to provide the advanced infrastructure that Wisconsin requires. Key points include: (1) developing a new regulatory model; (2) assuring access for all; (3) removing barriers to competition; (4) promoting effective deployment; and (5) supporting cost-effective use. Twelve figures and one table present task force findings.The appendix includes Executive Order Number 178, lists of task force members and participants, a glossary of terms and acronyms, and a 26-item selected bibliography. (SLD)

The impact of changes in work organization on development of Portugese workers' skills was examined. At the macro level, a national study was conducted to identify current and possible future relationships among initial training, continuing training, the labor market, and industrial relations in Portugal. At the micro level, cases studies of three enterprises were conducted to determine the extent to which new forms of work organization require workers to have additional or different skills the acquisition of which presumes new teaching procedures and/or provide new opportunities for apprenticeships and an opportunity to build on previously acquired skills. Two of the enterprises were manufacturers. The first enterprise had recently adopted the just-in-time system of production, and the second was organized along traditional lines (its research/planning units and manufacturing department were separate) but was also adopting a new work organization that may be described as skill generating. The third enterprise, a major Portugese bank, was changing its work organization in response to the technological modernization that has affected both banking equipment and information systems. The study identified the human resource development issues raised by the models of Portugese society's future. (The bibliography lists 35 references. Appended are eight tables on vocational education and training in enterprises.) (MN)

A study examined the need for vocational counseling among two target groups of young people under the age of 28 years in Spain: young women whose chief activity is domestic work in their own homes in Madrid and young people of both sexes affected by industrial reconversion who were living on the left bank of the Bilbao Estuary. Their vocational counseling needs were assessed by interviewing 20 individuals representing 14 organizations and 19 representatives of 14 organizations, respectively. In the case of the homemakers, it was emphasized that counselors must develop an appreciation of the value of domestic work in economic terms and in terms of well-being and must tailor vocational counseling services to the different stages of the homemakers' lives: the period of education and the moments of transition to the world of work, abandonment of work for the family, and return to work. It was recommended that the vocational counseling needs of young people in areas affected by industrial restructuring be met by providing them with labor market information during their formal education and training/retraining and counseling both outside and after the formal secondary education system. (A list of persons/organizations consulted is attached.) (MN)

A survey provided a description of Internal Labor Market (ILM) practices across a sample of 694 U.S. establishments. An establishment was defined as a business address and was distinct from a company. Interviews were conducted by telephone. Findings indicated that about 35 percent of private sector establishments with 50 or more employees had achieved substantial use of flexible work organization. The adoption of these forms of work organization was correlated with three factors: being in an internationally competitive product market, having a technology that required high levels of skill, and following what could be termed a "high road" strategy that emphasized variety and quality in contrast to low cost. Employer values were also important in determining whether an establishment undertook work reorganization. Evidence was also found that certain human resource practices such as high levels of training and innovative pay systems were associated with adoption of flexible work organization. (Contains 38 references as well as definitions, and 6 data tables.) (YLB)

Ireland's Industrial Restructuring Training Programme (IRTP) was evaluated to determine its effectiveness as a vehicle for improving the managerial and supervisory skill levels of employees in existing enterprises. Data were collected from the following sources: review of all program-monitoring documents submitted since the IRTP's inception; review of pertinent literature; interviews with a cross-section of individuals involved in national- and regional-level administration of the IRTP; interviews with representatives of 2 companies receiving funding under the program; and more comprehensive survey of 101 randomly selected employers regarding training and recruitment policies. Although the IRTP was determined to be highly relevant, its actual impact could not be assessed fully because of a lack of sufficient follow-up data. It was concluded that an additional year of accurate follow-up data is required for a conclusive evaluation of the IRTP. Among the 11 actions recommended to improve the IRTP were the following: increase the focus of the Training Support Scheme (TSS) by making special provision for companies in traditional sectors and altering the banding system to increase benefits to the very smallest companies; target future training assistance under the TSS to nonfirm-specific training; increase attention to training methods; and improve procedures for evaluating trainers and training. (Contains 10 tables.) (MN)

Because of increasing competition resulting from globalization of the economy, Oregonians have, in the past 8 years, experienced declines in income and standard of living despite the creation of 300,000 new jobs in the state. Many experts have stated that work organization and management style are the key to gaining the competitive edge in an increasingly global economy. High performance work organizations are firms that give top priority to product quality and customer service and that achieve high levels of productivity, efficiency, and innovation by giving frontline workers better skills, broader responsibility, and more authority. Oregon has good reason to encourage its firms to consider the high performance model. Included among the actions that Oregon might consider to promote the high performance model are the following: informing business, industry, and educators about the model and its potential for improving productivity and competitiveness; establishing a training fund to be managed by business and labor; providing technical assistance to firms; establishing continuous improvement users' groups; teaching high performance in schools from middle school onward; making the Oregon Quality Award available to all firms; and adopting International Standards Organization certification as a new Oregon benchmark for key industry development. (Contains 34 references.) (MN)

This paper demonstrates that production life-cycle models provide a conceptual framework to analyze systematically the interrelationships between industrial and technological change and human resources. Section II presents the life-cycle model, focusing on its implications for the types and level of employment and skill requirements in an area. Section III uses the life-cycle framework to assess the evidence on and implications of various state programs designed for the recruitment of firms, high tech job creation, and assistance to established firms. Trends in state efforts, life-cycle implications, and potential of the state strategies are discussed for each program type. Section IV provides guidelines for states in developing effective competitiveness strategies for each of three steps: state employment assessment, inventory of state resources, and strategic thinking about employment and work force needs. The final section presents conclusions that emerge from the analysis. It focuses on defensive and proactive state actions and their long-term implications as well as on evolving responsibilities in preparing a high quality work force. The states' roles in two major areas in which labor market adjustments spill beyond the boundaries of the firm are also discussed: the skill transfer process and displaced workers. (Contains 105 references.) (YLB)

A study investigated the human and physical resources implications of award restructuring in the textiles and metals industries for the Technical and Further Education (TAFE) system in Australia. (Award restructuring is based on union/employer cooperation in a process of negotiation and compromise between employers committed to increased productivity and efficiency and a work force seeking improved skills, responsibility, and working conditions.) Information was obtained through case studies of the two industries and of several companies in each industry. Qualitative research methods such as site visits, interviews, work observation, and document analysis were used to gather data for the case studies. Some of the key implications that were identified were the following: (1) TAFE colleges need to adapt more quickly and realistically by providing both site-specific and off-the-job training in subject areas identified by companies as being their most pressing needs; (2) TAFE training needs to reflect the impacts of award restructuring upon a company's operating processes; (3) TAFE needs to recognize the internal labor markets being created by award restructuring within companies; (4) greater emphasis needs to be placed on the implications for TAFE of skills, competencies, assessment procedures, and accreditation; (5) TAFE educational institutions should not give priorities to the production of commercially useful knowledge while neglecting the lifelong learning process; and (6) a redirected curriculum focus is needed, integrating vocational education and training systems. (18 references, 16-item annotated bibliography) (KC)

Changes in the economy and the workplace are changing job skill requirements and the process of skill acquisition. A study analyzed occupational trends and projections, performed case studies of four industry sectors (apparel and textile, accounting, management consulting, and software development), and reviewed research on changing skill demands and educational responses. Conflicting views of job skills emerged--whether jobs would increasingly become "deskilled" or require increasingly higher order skills. Intensified competition, changing demand for goods and services, and an accelerated rate of change necessitate economic restructuring. Coping with these conditions requires changes in the organization of companies and industries and in relationships between suppliers and customers. There are implications for education and training in the changes in the relative numbers of high- and low-skilled positions, a more uncertain and less well-defined environment, and more complex interactions among people. Whether and how much of the preparation of the work force should take place in schools or the workplace is at question. One conclusion is that rather than deskilling, technological advances demand more conceptual and problem-solving abilities at all levels of the employment hierarchy. The traditional distinctions between academic and vocational education are being challenged, and learning must now be viewed as a continuous, lifelong process. (Includes an appendix on occupational structure, 6 tables, and 86 references.) (CML)

This paper discusses human resources development (HRD) in Japanese industry. Chapter I addresses changing industrial and occupational structures as a foundation for planning and constructing management strategy, especially for business restructuring. The actual situation regarding business diversification is considered, and an attempt is made to portray the status of staff development activities. The chapter examines the presence of personnel management structures that hamper employees in working as they were trained, as well as countermeasures adopted by some advanced Japanese companies. Attempts to overcome the problem of in-company job conversion are described. Finally, the chapter reviews the actual situation of diversified employment patterns and prospects for the future. Chapter II discusses the fundamentals of personnel management based on the capability principle. A new concept of this principle is proposed that is based on the idea of capabilities development. A method of personnel management is discussed with which decision making by employees can be applied to a wider range of ideas. Chapter III examines the methodological problems of how to bring about personnel management selected by employees from three points of view: personnel management by voluntary choice and career planning, the extent of application and operation of career development planning, and the most desirable course for the future. (YLB)