Alice Lam, who is Lecturer in Human Resource Management and Industrial Relations in the Canterbury Business School at the University of Kent, examines how the organisation of technical work affects the utilisation and skills development of engineers. Evidence is drawn from a detailed investigation of the roles and career experience of some 60 Japanese and 55 British engineers in the electronics industries. the analysis highlights the importance of effective on-the-job learning for engineers and the need to view the structure of work organisation as one main determinant of skill formation. the author argues the inappropriate work organisation in the British firms has led to poor utilisation of the skills of engineers. This has caused low motivation and inhibited the innovative performance of firms.