American military troops must be made more effective and mobile and the country must awke up to the communist threat in Central America, the Army's Chief of Staff told a gathering of about 80 at the Kennedy School yesterday.

"Americans want to be number one, but they're not willing to pay the price," said Gen. John A. Wickham Jr., who received a Masters of Public Administration from the K-School in 1950.

Wickham also said that "there's a national self-flagellation every time we use military power and it does not work. In Honduras, there's a lot of flagellation about our bases there. But we have to send a message to Nicaragua. "Lay off Honduras--we mean business," and also help Honduras's self-defense."

Although the Central Intelligence Agency currently supports anti-government rebels in Nicaragua. Wickham said "Nicaragua. I'm afraid, is beyond saving in terms of turning it around."

Lighter, More Mobile

The 55 year-old General also proposed that the Army adopt smaller, more moveable divisions of about 10,000 men, instead of the standard 18,000 "As a result of the lessons of Grenada, it is clear that we need lighter forces in terms of deployment," Wickham said.

The army decided to use a 10,000 soldier division in the successful Grenada invasion last September, a move that Army spokesman Lt. Col. F. William Smullen said in a telephone interview "is the wave of the future. You don't need major aircraft or slops and you can fight more effectively, such as in Grenada."

Responding to a question about the place of women in the Army, Wickham said that while he opposes mixed infantry squads, he feels women do many jobs better than men.

"Women make better aviation mechanics," the general said. "Men often have a dignity problem. Women are more willing to go to their supervisor and admit they don't know how to do a job."

Wickham also said he opposes a draft because he feels Congress has provided strong incentives which have attracted a sufficiently talented all volunteer Army.