Although self-directed learning (SDL) has been promoted by businesses as being needed by managers, traditional business schools have not promoted this type of learning. In addition, some adult learners are not ready for SDL, and some subjects (such as accounting) are not suitable for SDL. The concept of self-directed learning readiness (SDLR) can be used on a continuum to guide thinking about the application of SDL to business subjects once the learner is psychologically equipped to succeed at SDL. The Self-Directed Learning Readiness Scale (SDLRS), which now contains 58 items, can be used to determine the readiness of individual learners. Learning contracts should be used for organizations that wish to use both teacher-directed and learner-directed (SDL) education as part of their worker and manager development programs. The learner contracts should spell out what is to be learned, how it will be learned, how the learning will be documented, and how the learning will be evaluated. A comparison of American and Japanese managers at a General Motors plant in Japan showed that the American managers were more oriented toward learning for career's sake, while the Japanese managers favored learning for its own sake and studied a variety of subjects not related to business. The question for the future is, should American companies encourage, and pay for, employees to study non-business subjects they find interesting? If it is believed that self-directed managers are crucial to organizational success, it will be necessary to change business schools and management development programs to reward self-directed learning. (Contains 27 references.) (KC)