Sadly, too many corporate leaders still believe that the way to boost productivity and profits is to continually reduce salaries, benefits, and training expenditures, a strategy that can be taken only so far. At a certain point in a developed society, salaries and benefits can't be slashed further and, in the long term, comparative economic advantage then must be realized through the effective mobilization of an educated, engaged, and loyal workforce.

When we spoke about workplaces in 1972 we mainly were referring to old-line manufacturing firms, on the one hand, and Main St. shops and restaurants, on the other. Both of those categories are now insignificant in terms of employment. Today, the economy is dominated by the rapidly growing Low-Cost Operators - national discount and mall chain stores, fast food franchises and supermarkets - which offer employees low salaries, few benefits and little training.

Manufacturing productivity is greatly determined by the design of jobs and how workers are rewarded.

By all indications, American business leaders are more adept at creating business strategies than they are skilled at human capital management. American entrepreneurs are world-beaters when it comes to creating new businesses, and corporate managers are adept at using the latest marketing, financial, and technological practices.

Aristotle turns out to be an extremely practical guide for those asking such personally profound questions, like: What should I do next to find meaning and fulfillment in the next stage of my life?. He offers timeless advice to business people who want to be successful both at work and in their private lives. For example, he shows how business leaders can create successful organizations and, at the same time, behave ethically. Come to think of it, the CEO of Wal-Mart should study Aristotle!

The current CEO of Wal-Mart says he has "no choice" but to sacrifice the welfare of his employees in order to serve his customers' need for low prices. So, why are they paying the guy millions a year if there is no possibility for him to change things? I think he is either kidding us or himself. The truth is more likely that he likes things the way they are, or he lacks the strategic imagination to come up with a viable and profitable ways to change them. If either is true, he is overpaid and probably not up to doing the job.

Sadly, at Ford, General Motors, and Chrysler sales continually trend downward, manufacturing costs rise, and employment declines. As the result of the decrease in the number of cars produced by American manufacturers, membership in the United Auto Workers has dropped from a high of over 1.5 million thirty years ago to less than half a million today.