We need to become more selective both in hiring and in firing. I believe the biggest single competitive advantage the best Japanese companies have over their U.S. counterparts is the overall superior quality of their people. When management is perceived to be deserting its people, the people will inevitably start to lose their dedication. A driving force of today's restructuring efforts is presumably to become more competitive with Japanese companies. I believe the loyalty and pride of their workers is another of Japan's secret weapons.
Loyalty breeds loyalty - and vice versa.
Managing through difficult times like these requires tough mindedness. I believe it is essential to keep the trust of the work force. And it is possible to retain trust only by being honest and above-board with your people at all times. Good employee relations is not a luxury, it's a necessity. It's the foundation of everything else.