Skill Mix, Experience, and Readiness.
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA NAVAL PLANNING AND MANAGEMENT DIV
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The management of military manpower should focus on producing military readiness as cheaply as possible. Doing this requires information on the expected contribution to readiness of different kinds of people, and no how they can substitute for each other. That is, in economic terms, the implications for output of different skill mixes. The choice of a skill mix should depend, of course, on relative prices--how much various people are paid. The compensation system should, in turn, be determined by peoples marginal contribution to output. The system evolved as it has because of the paucity of information on the contribution of people of military readiness. My purpose is to argue that we can do better. We known enough to begin to manage military manpower with an eye on readiness. We can begin to choose who we want based on what we expect to get from them, and to modify the compensation system accordingly.
- Personnel Management and Labor Relations