On-the-job training for Management Accounting students of the University of the East: An assessment or evaluation.

A Thesis Submitted to

Mr. Darwin M. Guianan

In partial Fulifillment of the Requirements in Technical Writing and Research Writing (ZEN-113)

Submitted by:

Kim Arnino

Chapter I

Introduction

A. Background of the study

This study is about the benefits of on-the-job trainingfor the Management Accounting students (BSBA-MA) of the University of the East Caloocan Campus. Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. The Management Accounting of our University is the only course in the Collage of Business Administration that doesnt have OJT in the curriculum. On the job Training are part of a college curriculum that aims to train and orient students about the work and their future career. OJT is very important not only to teach students their chosen career but to show students the reality about working. On the job Training are part of a college curriculum that aims to train and Orient Students about the work and their future career. OJT is very important not Only to teach students their chosen career but to show students the reality about Working. Most students have taken their OJT for granted; not realizing the Importance it can bring on In Their future career. Having a good performance during OJT is very important Especially Now that theres a tight competition Towards job seekers and the

high qualification of Companies. This type of Training can help students to become more familiar with the realities of working; in some cases, on-the-job training may lead to a Stable and fulfilling career. Students may work part-time, learning skills such as how to Use a cash register, How to serve customers or how to do basic accounting. In some Cases, these Work skills will count as credits towards a school diploma. The aim of this study is to evaluate on-the-job training system in the curriculum of the Management Accounting (BMGA) of the University of the East Caloocan.

Background on the subject of the study:

Management accounting is one of the most important organizational functions within an Organization. The objective of management accounting is to present financial and nonfinancial information which is helpful in internal planning, controlling and decision-making. The Bachelor of Science in Business Administration major in Management Accounting program (BSBA-MA) is designed to provide students with the principles of business management with orientation in accounting. The Program aims to develop the business competency and management level skills needed in order to drive business performance and establish a quality financial practice.The (BSBA-MA) offer in the University of the East Caloocan Campus doesnt have on-the-job training in its curriculum. The OJT system is task to prepare the students in skills training in the real world and teaches students to produce in a different, more adult, environment.

Statement of the Problem

The study aimed to determine the significant effect of OJT Program on the Management Accounting Students as perceived by selected students of University of the East Caloocan Campus during the second semester of school year 2012 2013. Specifically, the study aimed to answer the following sub-problems; 1. What is the profile of the respondent in terms of 1.1 Age 1.2 Gender 2. How do the respondents perceive the factors in OJT Program in terms of: 2.1 Benefits and Incentives; 2.2 Competence, 2.3 Training Evaluation, and 2.4 Work Habit? 3. What is the respondents perception on the effect of the OJT Program in Management Accounting Students in terms of: 3.1 Students Self development, and 3.2 Students confidence? 4. Is there a significant difference in the perception of the respondents on the effect of OJT Program on the Students Self development and confidence when group according to gender, year level and college? 5. What are the respondents recommendations to improve the present non-OJT Program for the management accounting students?

Significance of the Study This study is significant to the following: Students to educate them the importance and advantages of OJT system in developing their skills and competence. It will give you a sense of confidence that you can use when applying for a job after graduation. Students should realize the importance of OJT on their future career. Having a good performance during OJT is very important especially now that there's a tight competition towards job seekers and the high qualification of companies

University who was in charged or responsible on establishing a better OJT Program for Management Accounting for a better and good reputation. This will be helpful in a way that will gear towards the improvement of quality education in the University, particularly in the Collage of Business Administration which is committed to provide equal opportunities in quality business education, consistent with the UE mission and our national aspiration, and geared towards global interdependence.

Employers will ask you the relevance of your training to your course and to the position you are applying for. If you will get a high evaluation grade, your employer might hire you when you graduate. Your OJT superior my recommend your skills to other companies whom he knows.

Scope and Delimitation of the Study

The scope of our study is for the Management Accounting students (BSBA-MA) of the University of the East Caloocan Campus. The study will include 4 th year Management Accounting students and theon-the-job training department of U.E. It is focused on the assessment of OJT system in the Management Accounting program. The study does not cover courses in other collages except for the Collage of Business Administration. The study was focused on the student self- development and confidence of the University OJT Program, and covered the awareness and knowledge of about 40 College students of University of the East from all colleges in Caloocan campus, about the effect of OJT Program to thestudent self development and confidence. And have the limited study of having about a 40 respondents from the Colleges of Business Administration.

Theoretical Framework:

Human Capital Theory: Implications for Educational Development Olaniyan. D.A Department of Educational Management University of Ibadan, Ibadan Okemakinde. T

Department of Educational Management University of Ibadan, Ibadan

Abstract The belief that education is an engine of growth rests on the quality and quantity of education in any country. The paper posits that formal education is highly instrumental and even necessary to improve the production capacity of a nation and discusses the rationality behind investment in human capital. Empirical evidences of human capital model were identified and findings reveal that investment in education has positive correlation with economic growth and development. Criteria for the applicability and problems associated with the theory were identified and implications for educational development highlighted.Conclusively, the paper recommends that for education to contribute significantly to economic growth and development, it must be of high quality to meet the skill-demand needs of the economy.

Introduction Education is an economic good because it is not easily obtainable and thus needs to be apportioned. Economists regard education as both consumer and capital good because it offers utility to a consumer and also serves as an input into the

production of other goods and services. As a capital good, education can be used to develop the human resources necessary for economic and social transformation. The focus on education as a capital good relates to the concept of human capital, which emphasizes that the development of skills is an important factor in production activities. It is widely accepted that education creates improved citizens and helps to upgrade the general standard of living in a society. Therefore, positive social change is likely to be associated with the production of qualitative citizenry. This increasing faith in education as an agent of change in many developing countries, including Nigeria, has led to a heavy investment in it. The pressure for higher education in many developing countries has undoubtedly been helped by public perception of financial reward from pursuing such education. Generally, this goes with the belief that expanding education promotes economic growth.

However, the paradox accompanying this belief is that, despite the huge investment on education, there is little evidence of growth-promoting externalities of education in Nigeria. Human Capital Theory: Implications for Educational Development.

Concept of Human Capital Theory The economic prosperity and functioning of a nation depend on its physical and human capital stock. Whereas the former has traditionally been the focus of economic research, factors affecting the enhancement of human skills and talent are increasingly figuring in the research of social and behavioral sciences. In general terms, human capital represents the investment people make in themselves that enhance their economic productivity.

The theoretical framework most responsible

for the wholesome adoption of

education and development policies has come to be known as human capital theory. Based upon the work of Schultz (1971), Sakamota and Powers (1995), Psacharopoulos and Woodhall (1997), human capital theory rests on the assumption that formal education is highly instrumental and even necessary to improve the production capacity of a population. In short, the human capital theorists argue that an educated population is a productive population.

Human capital theory emphasizes how education increases the productivity and efficiency of workers by increasing the level of cognitive stock of economically productive human capability which is a product of innate abilities and investment in human beings. The provision of formal education is seen as a productive investment in human capital, which the proponents of the theory have considered as equally or even more equally worthwhile than that of physical capital.

According to Babalola (2003), the rationality behind investment in human capital is based on three arguments: I. That the new generation must be given the appropriate parts of the knowledge which has already been accumulated by previous generations; II. That new generation should be taught how existing knowledge should be used to develop new products, to introduce new processes and production methods and social services; and III. That people must be encouraged to develop entirely new ideas, products, processes and methods through creative approaches. According to Fagerlind and Saha, (1997) human capital theory provides a basic justification for large public expenditure on education both in developing and developed nations. The theory was consistent with the ideologies of democracy and liberal progression found in most Western societies. Its appeal was based upon the presumed economic return of investment in education both at the macro and micro levels. Efforts to promote investment in human capital were seen to result in rapid economic growth for society. For individuals, such investment was seen to provide returns in the form of individual economic success and achievement.

Most economists agree that it is human resources of nation, not its capital nor its material resources, that ultimately determine the character and pace of its economic and social development. Psacharopoulos and Woodhall (1997)asserts that:

Human resources constitute the ultimate basis of wealth of nations. Capital and natural

resources are passive factors of production, human beings are the active agencies who accumulate capital, exploit natural resources, build social, economic and political organization, and carry forward national development. P. 102.

Empirical Evidence of Human Capital Model The importance of education and human capital has been brought out in many studies of economic growth and development. Robert (1991) developed a human capital model which shows that education and the creation of human capital was responsible for both the differences in labor productivity and the differences in overall levels of technology that we observe in the world. More than anything else, it has been the spectacular growth in East Asia that has given education and human capital their current popularity in the field of economic growth and development. Countries such as Hong Kong, Korea, Singapore, and Taiwan have achieved unprecedented rates of economic growth while making large investments in education. In the statistical analysis that accompanied his study, the World Bank (1993) found that improvement in education is a very significant explanatory variable for East Asian economic growth.

There are several ways of modeling how the huge expansion of education accelerated economic growth and development. The first is to view education as an investment in human capital. A different view of the role of education in the economic success is that education has positive externalities. Educate part of the community and the whole of it benefits.

The idea that education generates positive externalities is by no means new. Many of the classical economists argued strongly for governments active support of

education on the grounds of the positive externalities that society would gain from a more educated labor force and populace. (Van-Den-Berg 2001). Smith (1976) reflects such progressive contemporary thought when he wrote that by educating its people, a society: Derives no inconsiderable advantage from their instruction. The more they are Instructed, the less liable they are to the delusions of enthusiasm and superstition, which, among ignorant nations, frequently occasion the most dreadful disorders. An instructed and intelligent people besides, are always more decent and orderly than an ignorant and stupid ones.P 68.

Smith views the externalities to education as important to the proper functioning not only of the economy but of a democratic society.

Another way of modeling the role of education in the growth and development process is to view human capital as a critical input for innovations, research and development activities. From this perspective, education is seen as an intentional effort to increase the resources needed for creating new ideas, and thus, any increase in education will directly accelerate technological progress. This modeling approach usually adopts the Schumpeter (1973) assumptions of imperfectly competitive product markets and competitive innovation, which permit the process of generating technological progress. Education is seen as an input into the intentional and entrepreneurial efforts to create new technology and new products. Proponents of this view of education point out the close correlation between new product development and

levels of education. The countries that are at the forefront of technology also have the most educated population (Van-Den-Berg 2001).

The review of empirical tests of the theory by Garba (2002) shows that crosscountry regressions have shown positive correlation between educational attainment and economic growth and development.Odekunle (2001) affirms that investment in human capital has positive effects on the supply of entrepreneurial activity and technological innovation. Ayeni (2003) asserts that education as an investment has future benefits of creation of status, job security and other benefits in cash and in kind.

However, Ayara (2002) reports that education has not had the expected positive growth impact on economic growth in Nigeria. Hence, he proposes three possibilities that could account for such results, which are: (i) Educational capital has gone into privately remunerative but socially unproductive activities; or (ii) There has been slow growth in the demand for educated labour; or (iii)The education system has failed, such that schooling provides few (or no) skills. Application of Human Capital Theory to Educational System Babalola (2003) asserts that the contribution of education to economic growth and development occurs through its ability to increase the productivity of an existing labour force in various ways. However, economic evaluation of educational investment projects

should take into account certain criteria according to Psacharopoulos and Woodhall (1997) which are: Direct economic returns to investment, in terms of the balance between the opportunity costs of resources and the expected future benefits; Indirect economic returns, in terms of external benefits affecting other members of society; The private demand for education and other factors determining individual demand for education; The geographical and social distribution of educational opportunities; and, The distribution of financial benefits and burdens of education. Education plays a great and significant role in the economy of a nation, thus educational expenditures are found to constitute a form of investment. This augments individuals human capital and leads to greater output for society and enhanced earnings for the individual worker. It increases their chances of employment in the labor market, and allows them to reap pecuniary and no pecuniary returns and gives them opportunities for job mobility.

Education is a source of economic growth and development only if it is antitraditional to the extent that it liberates, stimulates and informs the individual and teaches him how and why to make demands upon himself. Accordingly, a proper educational strategy would manifest itself in four major Development-producing capacities. According to Bronchi (2003) the first is the development of a general

trendfavorable to economic progress. The reference is to social mobility, a general increase in literacy necessary for improved communication.

The second capacity emphasizes the development of complementary resources for factors which are relatively plenty and substitutes for relatively scarce factors. That is, educated people would be more adaptable to varying production needs. The third capacity underscores the durability of educational investment. He argues that education has greater durability than most forms of non-human reproductive capital, which implies that a given investment in education tends to be more productive, other things being equal, than some outlay on non-human capital. Finally, education is an alternative to consumption, for it transfers to round-about production the resources that would otherwise be consumed now.

Sensitivity of Human Capital Theory The main problem associated with the belief that education is good for economic growth and development according to Babalola (2003) concerns how to maintain an equilibrium position. That is, where there will be no evidence of either shortage or surplus supply of educated people. A shortage of educated people might limit growth, while excess supply of it might create unemployment and thus limit economic growth and development.

The theory has been criticized on several grounds. At the individual level, it has become controversial whether or to what extent education or other forms of human

investments are directly related to improvement in occupation and income. Bronchi (2003) asserts that raising the level of education in a society can under certain instances increase the inequalities in income distribution.

Fagerlind and Saha (1997) assert that while governments may adopt educational plans consistent with specific development goals and strategies, they can only be partially certain that outcomes of these will correspond to original intentions; the more political the goals of education, the more problematic the outcomes. In light of this, to view education as a panacea for the attainment of development objectives is risky. Thus, education in general and schooling in particular, cannot of its own achieve the desired societal goals without structural reforms.

Another major problem in the application of the theory is its failure to account for a growing gap between peoples increasing learning efforts and knowledge base and the diminishing number of commensurate jobs to apply their increasing knowledge investment, especially in developing nations. To this, some advocates of the theory (Bronchi, 2003, Castronova 2002, Crepaz and Moser 2004) assert that these great increases in learning efforts have not led to commensurate economic gains because of the declining quality of education, lopsided and politically motivated system of education.

Implications of Human Capital Theory for Educational Development The central difference in the policy implications of the human capital model and the alternative models relates to the desirable level of public expenditure on education. The basic implication of the human capital model is that allocation of resources on education should be expanded to the point where the present value of the streams of returns to marginal investment is equal or greater than the marginal costs.

Many of the developing nations have thus realized that the principal mechanism for developing human knowledge is the education system. Thus, they invest huge sum of money on education not only as an attempt to impact knowledge and skills to individuals but also to impart values, ideas, attitudes and aspirations which may be in the nations best developmental interest.

In addition to manpower planning needs, parents strongly feel that in an era of scarce skilled manpower, the better the education their children can get, the better are their chances of getting well-paid jobs. The poor often look at their childrens education as the best means of escaping poverty. The concept of human resources has provided a useful bridge between the theoretical concerns of students of the developmental process and the practical requirements of assistance to planners.

Irrespective of the explanation given for global educational expansion, the consequences of this expansion for social systems can be problematic. The tensions and strains of educational expansion can impede economic, social and political

development. For example, the accelerated costs of expanding educational system compete with other sectors of the respective societies for finite resources. As mass primary education is attained, expansion shifts to the secondary and tertiary levels as these too are gradually transformed into mass systems. At the same time, the increase in costs is not arithmetic but geometric. These pressure ultimately create dilemma for government who must realistically assess and determine spending priorities for scarce economic resources.

Adopting a position based on the assumptions of the human capital and modernization theorists, Fagerlind and Saha (1997) argue that in developing countries at least, educational demand must be tempered in order to bring costs and benefits to more realistic levels. Among the suggestions they made are that: The costs of education should be borne by the beneficiary or recipient by means of family assistance or self-help schemes rather than solely the state; The income differential between the traditional and modern sectors should be reduced, which in effect lowers the benefits according to the educational attainments; The educational requirements for particular jobs should not be exaggerated; and The wage structure should be tied to occupational and requirements rather than educational attainments.

It is also worth noting that the causal relationship between education and earnings has important implications for public policy. If human capital theorists are correct in arguing that education is the primary cause of higher earnings, then it obviously makes sense to provide more education to low-income groups of society to reduce poverty and the degree of income inequality.

This analysis suggests that the primary focus of subsidies to education should be on ensuring that all those who can benefit from, have access to appropriate opportunities, rather than on reducing costs incurred by those who would undertake higher education in any case.

Conclusion and Recommendations Nigeria is confronted by most of the problems that could limit the capacity of expansion in education to stimulate growth and development such as under-employment, low absorptive capacity, shortage of professionals, regional imbalances and brain-drain. The persistence of many of the problems in spite of the various policy formulation and responses points to the need for a more focused, responsive, functional and qualitative educational system. To contribute significantly to economic growth and development, education must be of high quality and also meet the skill-demand needs of the economy.

It is not a noble achievement for any sector of the economy to exist for years only to make a negligible contribution to economic growth, which is not commensurate with

its life span and investment. In this case, there is the need for more commitment by the authorities not to interfere with decisions such as curriculum or teachers responsibilities. Parents should not wish to fulfill their life expectations in their children by selecting careers for them or by suggesting subjects that they should study. They should not also encourage or assist their children and wards to purchase certificates. Government, in its employment policies, should lay more emphasis on specialization and competence rather than paper qualification and ill-gotten certificates.

References [1] Ayara, N. N (2002) The Paradox of Education and Economic Growth in Nigeria: An Empirical Evidence. Selected papers for the 2002 Annual Conference.Nigerian Economic Society (NES) Ibadan.Polygraphics Ventures Ltd. [2] Ayeni, O. (2003) Relationship Between Training and Employment of Technical College Graduates in Oyo State between 1998 and 2001. Unpublished Ph.D Thesis.University of Ibadan, Ibadan. [3] Babalola, J.B. (2003) Budget Preparation and Expenditure Control in Education. In Babalola J.B. (ed) Basic Text in Educational Planning. Ibadan Awemark Industrial Printers. [4] Bronchi, C. (2003); The Effectiveness of Public Expenditure in Portugal; Economics Department Working Paper 349; OECD. [5] Castronova, E. (2002); To Aid, Insure, Transfer or Control What Drives the Welfare State?; DIW Berlin; German Institute for Economic Research; Discussion Paper 281. [6] Crepaz, M. and A. Moser (2004); The Impact of Collective and Competitive Veto Points on Public Expenditures in the Global Age; Comparative Political Studies; 37; (6) pp. 259-285. [7] Fagerlind, A. and Saha, L.J. (1997) Education and National Developments. New Delhi. Reed Educational and Professional Publishing Ltd. [8] Garba, P.K (2002) Human Capital Formation, Utilization and the Development of Nigeria. Selected Papers for the 2002 Annual Conference of the Nigeria Economic Society.(NES).Ibadan. Polygraphics Ventures Ltd.

[9] Odekunle, S.O. (2001) Training and Skill Development as Determinant of Workers Productivity in the Oyo State Public Service. Unpublished Ph.D Thesis, University of Ibadan. [10] Psacharopoulos, G and Woodhall, M. (1997) Education for Development: An Analysis of Investment Choice. New York Oxford University Press. [11] Robert, B. (1991) Economic Growth in a Cross Section of Countries. Quarterly Journal of Economic 106 (2) p. 407-414. [12] Sakamota, A. and Powers, P.A. (1995) Education and the dual labor market for Japanese men in American Sociological Review. 60 (2) P. 222-246. [13] Schultz, T.W. (1971) Investment in Human Capital. New York. The Free Press. [14] Schumpeter, J. (1973) The Theory of Economic Development. Cambridge, Mass: Harvard University Press. [15] Smith, A. (1976) An Inquiry into the Nature and Causes of Wealth of Nations. Chicago University of Chicago Press. [16] Van-Den-Berg, H. (2001) Economic Growth and Development (International Edition) New York. McGraw-Hill Companies, Inc. [17] World Bank (1995) Review of Public Expenditure ODI, London.

Chapter 2 Review of related literature

ON-THE-JOB-TRAINING: EASY TO DO IF YOU HAVE THE RIGHT PROGRAM

Introduction

Human resource development has been a powerful tool in the manufacturing process. Markham (1967) stated that all phenomena of vocational education and training in our modern society have their roots in the past and we have not been dealing with anything new except with the expansion and development of what has already been created or existed. On-the-job training has been one of those phenomena of vocational education that has been around for a long time. Gray and Herr (1998) reported that by the turn of the 20th century, a consensus developed that to continue Americas prosperity a workforce educational system was needed and generally on -thejob training was the selected training method. The goal of OJT was to equip the workforce with the skills, knowledge, understanding and motivation to meet the demands of an industrial and global economy. Rowley (1995) added that training and development was important for the maintenance of the human resource base of the organization and must be viewed as an integral part of the core organizational strategy, rather than an ad hoc operation issue (p. 5).

Industry has to be prepared to equip the workers with every advantage and learning technique to provide a knowledgeable, productive and satisfied worker. A deficiency in training has resulted in workers being frustrated and not being able to perform their assigned tasks. This has resulted in ineffective services, a lack of self-

esteem, customer frustration and chronic low productivity (Jain, 1999). OJT has been critical for human resource development and resource planning in the highly technical and demanding industrial and business environment.

It has been the conservative wisdom that factories of the future will be centers of continuous improvement, innovation and knowledge creation, with the focus being on the development of a set of strategies and organizational forms based on high skills, organizational flexibility and trust (Cook & Morgan, 1998). The industrial trainer had to provide a systematic approach that transforms an unskilled worker into a highly skilled knowledgeable employee. There have been two ways of accomplishing this task: formal educational training and informal on-the-job training (OJT).

Jain (1999) and Doeringer (1995) described formal educational training as mainly theoretical, obtained by academic diplomas and degrees, where individuals proved their ability academically but not practically. Informal on-the-job training (OJT) has been practical, and has prepared an individual to use acquired knowledge efficiently and confidently. OJT helped the worker build their skills on past experiences and knowledge. Cook & Morgan (1998) has identified OJT as a central feature of contemporary manufacturing. The organization has achieved their objectives by using the innovative abilities of individuals more effectively. Well trained individuals knew the extent, potential and strength of their jobs, and they have built on their knowledge and experience through OJT. Campbell (1990) described OJT as giving the employees normal working situations as designed to change the skills, attitude, and knowledge that

has been directly related to the performance demands of the task. Training had to provide the individuals with the capacity for improvement and job satisfaction. Barton (2001) explained that employees have not been valuable in the abstract, but rather as a capacity of the jobs they execute, a direct expression of the human capital investments that came from the demands placed on the employee.

The purpose of this paper was to present a proven program of OJT development, training and techniques that has provided the skills and knowledge for job task completion. The author believed that the identification of the systematic creation of an OJT program may assist other business and industrial facilities in preparing their workers to be productive employees. Literature Review Training Activities Earlier research stemming from different disciplines suggested that many factors are involved in explaining the intensity of training activities and the differences in concentration between industrial sectors (Aalders& van den Bosch, 1992). Four groups of explanatory factors have been identified with each influencing the other. Yet, because of their uniqueness, each stands alone as an independent and separate entity. The factors were: the industrial structure, the business environment, the structure of the industrial training program, and the industrial relations within that sector (Aalders et al., 1992).

The industrial structures were those factors that include the size of the organization, the type of product, and the homogeneity of the production process. Training necessities of a mom and pop shop would require less training time and methods. But, because of the lack of the training skills and HR support, the smaller organization would lack the training discipline required to effectively train the smaller workforce. On the other hand, the large multi-location corporation would have the dedicated staff and training programs but because of production demands and type of products produced, may also have an inadequate training program for their employees because of the constraints of the business (Aalders et al., 1992).

The business environment was the second area under the training activities that identified the external demands placed on industry by regulatory bodies. The business environment had at least four factors that have an influence on the training programs. Government policy had moral and legal application for employee training. Legislation has been written that protects the employee from physical harm and has required the employer to inform and protect the employees from hazards that may be present in the manufacturing process. Technological developments had an impact on the industrial sector with the consequences of not having enough qualified employees to operate the new technology. Demographic and market development caused discrepancies between the companys demand for qualified trained employees and the supply from the local job market. Improving the internal qualifications of the current workforce helped reduce this demand but with attrition and an aging workforce, external resources must be explored in order to fill the gap created by this demand (Aalders et al., 1992). Making the decision

to use internal and/or external employees to fill the labor demand delineated the expanding concern for adequate industrial training programs. Providing competent employees with the skills and qualifications to fill the industrial demands has been an ongoing challenge.

Intangible assets were those things that a corporation sometimes overlooks as a training basis for improving the skills of their employees. Knowledge was the baseline of job opportunity and wealth. Before any goods or services could be provided, the process to manufacture the final product had to be analyzed and understood. In the world of rapid change, ideas and knowledge had to be continuously created. Change can be resolved by looking at what was known, and applying the knowledge to what was not yet known (Bagshaw, 2000).

Knowledge based workers were actively involved in six intangible assets (Aalders et al., 1992). First, was the capability of having the knowledge and skills to perform the technological requirements of the job. Second, was capturing the knowledge to know where to get the required information and then how to deliver it to the necessary areas. The third intangible asset was to assimilate the knowledge available and make a reference database so that it can be used throughout the organization. Fourth, was making a connection through networks of knowledge exchange rather than traditional communication structures. Fifth, was the creation of new knowledge through the collective brainpower of different organizations. Employee groups have been very productive in new process innovation by sharing existing

concepts and providing the company with a competitive advantage. And last, conversion of knowledge to action in a way that has added value to existing process and methods.

Aalders et al. (1992) described the third group of factors that relate to the structure of industrial training as organization and finance. Organizational structures identified training as an internal resource with programs domestic to the organization or external resources with training being outsourced. Possible solutions to this question have forced similar industries to provided co-ops with comparable industries that share analogous training demands and training programs. Other specialized industries were forced to provide the distinctive mandatory training for their unique kinds of training requirements (Markham, 1967). Another question that industrial finance has answered was to provide funds, not only for traditional training programs, but for the lost process time and labor cost needed to meet the customers demands because employ ees attended a required training program.

The last focus of industrial training was the industrial relations which had a very large impact on the training activities (Aalders et al., 1992). Labor union and employee support was an essential part of the training process and without this support, training success was almost impossible to obtain. Employee attitudes toward company policies were viewed as restrictive or convoluted and had to be re-defined with employee buy-in as a key ingredient for implementation and acceptance. Training Procedures

Trends in training seemed to have gone in a cyclical pattern with new management styles emerging every year and always a new and better concept being developed. Many of the proven training procedures such as classroom, job instruction training and on-the-job training have continued to be the mainstream for employee training (Markham, 1967). Lifelong learning became essential because of the advances of technology and the elimination of the middle class through market globalization. Learning centers replaced teacher-classrooms settings; advanced technologies replaced classrooms with computers, virtual reality and on-line instruction. Training has gone beyond simply providing curriculum and structure to the different avenues and domains of procurement.

Rose (2003) stated that the skills required for modern manufacturing had never been greater than in todays high tech industry than at any previous time in history. Employees must have the knowledge, resources and skills to solve current problems with real time solutions. The end product of any training program has been the successful results that the employee has been able to apply to the existing process. Classrooms have been replaced on the shop floor with sophisticated technology such as computer aided software, computer screens with touch graphics, and online troubleshooting services for analyzing process problems, production efficiency and continuous improvement of the manufacturing systems. Schettler (2002) added you must deal with people where people livein their heartsand then tie it to their minds (p. 40).

Employees continue to have the need to understand their learning styles, and management will have to provide a multiple curriculum to meet the demands of this new generation student. Employees will have to learn new ways to process information and solve problems that were not even thought about ten years ago (Hoyt, 2001). As industrial training continued to evolve, new ideas and concepts unfolded and projected future trends have been left to the science fiction writers. Those employees who have not conformed to the new training policies have created many problems in industrial labor demands. Companies have been forced to either convert these employees to the new continual learning process or replace them with employees who would comply.

Hoyt (2001) said that career education was most widely demonstrated and the best validated proposal for education reform. Training has evolved into a highly developed process that has relied on the latest technology to provide needed skills for the manufacturing processes. A study conducted by the National Association of Manufactures identified a serious shortage of qualified employees, which negatively affected Americas ability to compete in the global economy (Rossi, 2005). The report went on to say that, A highly skilled, innovative, high performance, workforce is essential for our manufacturing sector to remain vibrant and to compete in successfully in a global economy (Rossi, 2005, p. 14). A highly trained and skillful workforce was not always a guarantee that the end performance of product quality, production costs, and delivery would be achieved. Other variables would come into play that would affect the overall efficiency of the operation.

The environment in manufacturing consisted of very costly processes and equipment. Some organizations viewed education as less important and training as a cause for turnover because of better skills and opportunity for employees to leave the company. Rose (2003) has stated that companies with vision have not been afraid to train their employees in new techniques, comprehension and skills. These companies provided clear defined leadership and have been aware of the benefits of a fully-trained employee that not only enhanced their human resources but attracts highly skilled workers. On-the-Job Training Over the last several decades not much has changed in modern industrial training. Rose (2003) stated that the skills required for modern manufacturing have been greater in todays high technology industry than at any previous time. Unfortunately, training in the manufacturing industry has still been badly neglected. The informal training has always been a part of the transfer of skills from one worker to another. The necessity for new employees to be trained as quickly as possible and bring them up to speed has almost always fallen on the supervisor (Markham, 1967, p. 15). The most expedient method of training the new employee was to place that individual with an employee who could perform the task in a satisfactory manner even though the employee-trainer had little experience as a trainer. The trainer would facilitate the knowledge and the new employee would satisfactorily learn the task through an on-the-job training experience. Creth (1986, p.v) pointed out the benefits of on-the-job training: increase in quality of work because of understanding of the process;

increase in quantity of work by knowing how to resolve problems; reduced need for close supervision because of the increase in the employees self-efficiency;

confident, flexible staff with low turnover because of ownership and feeling part of the organization;

high staff morale created by team interaction where each team member has a vital role in success of the organization;

job satisfaction from the culmination of producing a quality product, on time to meet customer demand, at a cost that has been competitive and functioning with fellow workers to achieve mutual goals.

Frick (1987) concluded that one of the attractions of OJT was to be a practical experience as opposed to theoretical discussion. Practical knowledge was longer lasting and easier to learn and retain than theoretical knowledge. OJT provided the new employee with the feeling of importance of the task by placing responsibility to either succeed or fail with the company assets, time and product. The practical aspect of OJT has been the relationship of new recruits to begin work immediately and become productive faster (White, 1982). OJT has been one of the best forms of training because it placed the employee in a learning situation to develop confidence and a sense of productivity. Training has been applied to improve the skills to a higher level or correct a skill deficiency. OJT has been used across the entire spectrum or employee development from an entry level new employee to a mastery level competence (Frick, 1987).

Developing the OJT Steps OJT has been developed in four distinct stages (Pulley, 2004). Stage I was to identify and create a detailed breakdown of the skill requirements for a specific position and was called the job task analysis. Stage II was the cognitive perspective of the adult learner. Stage III was the role of the trainer in the OJT process and Stage IV was the evaluation of the OJT process and outcomes.

Stage I. Job Task Analysis. Developing a job task analysis required four steps: job process, job description, recognized skills, and an effective curriculum (Mager& Beach, 1967). The first step was to determine if the current process steps were the most efficient and achieved the desired results that meet the state of the art for manufacturing in safety, quality and productivity. Once the specific criterion for the most efficient operation had been met, the second step was to write a job description.

The job description process has involved three functions: writing a general description of the tasks performed, identifying the step by step job tasks, and listing the detail steps for each job tasks (Mager& Beach, 1967). The job description has listed a general account of the persons activity, the frequencies of motion and repetition, described the environment of the work station and a description of the level of skills required to perform the task. Once the job description (summary) was written, the job could be divided into tasks that identified the content of the job description.

Mager and Beach (1967) described task analysis by discussing three phases of course development. The first phase was preparation to identify the job detail steps and determine prerequisite skills required to begin training. The second phase was determining the content, sequence and lesson plan for the identified job training requirements. The third phase was improvement to compare the performance of the training to the objectives and provide feedback to improve the process.

The concept of a development model was to provide a step-by-step procedure to help the trainer and student identify what the job consisted of in terms of tasks, performance, and frequency. After the tasks descriptions have been identified, each task would be divided into detail task steps that would describe the specific functions in focused elements. Mager and Beach (1967) described the intent of the task description was to capture the divisions or categories that described the structure of the job contingent. A good rule to verify the validity of the task descriptions was to check to see if every aspect of the job description structure was being identified by the task descriptions. In other words, does the task description stand alone and contradict the other task descriptions or do they complement and add to each other to form a cohesive summation of the content of the job description (Mager& Beach, 1967)? According to Mager et al. (1967), there were three areas that needed to be identified with task listings in the task description. The three were: the frequency or repetition of tasks, importance of the task in relation to job function, and the task learning difficulty. Each has a rating scale that identified the degree of difficulty or repetition.

The third step of job task analysis was to identify the skills needed to perform the identified tasks. Basic skills have to be identified before job task analysis can be developed. Mager et al. (1967) said, The strategy of developing effective instruction then is one that called for performance orientation rather than subject matter orientation. The strategy is to use the job as the basis for deciding what will be taught and in what order and depth, rather than simply to present as much subject matter as possible in the allotted time (p. 3). The process to identify or describe the job began with a general description that presented a general summary of the overall function of the job. The job description should list what was actually being performed, not what should be performed or what the employee knew.

Stage II. Cognitive Perspective. The cognitive perspective of the adult learner was the second stage for developing OJT. Akdere and Conceicao (2006) described cognitive perspective as the focus of the adult learner on perception, insight and meaning. Cognitive perspective portrayed the concept that the adult learner was not a passive system with stimuli being delivered and an expected response leaves. Akdere and Conceicao (2006) concluded that thinking persons have interpreted sensations and has given meaning to the events that affect their consciousness. The locus of control has been the individual and not the learning environment. Cognitive perspective has focused on three simultaneous processes: (1) acquisition of new information, (2) transformation of the knowledge to their specific application, and (3) evaluation of the learning process (Akdere&Conceicao, 2006).

Stage III. Role of the Trainer. Management has had the responsibility to provide resources for training under the OJT system. The role of the trainer became paramount in helping to expand the needed skills that the new employee must develop. Martyn and Webster (2005) concluded that the trainers must encourage the OJT employee to take responsibility for developing the competencies needed for the new job, express an effort to learn the skills and demonstrate competency. The trainer and employee will have to conduct a self-assessment through a gap analysis, to determine deficiencies in the required criteria for the task assignment and the current knowledge base of the employee. The trainer has the role of mentor, the employee as student.

Stage IV. Evaluation. Effective teaching has been emphasized as a means to transform the OJT employee into an effective learner. Akdere and Conceicao (2006) described the fast changing business environment where the individual learner and trainer must be strategically linked with the technological changes and innovations of the organization. Effective trainers would have to react and make changes relevant to the individual needs while synthesizing individual efforts to meet common objectives. Best and Kahn (1993) identified checklists as the simplest of the devices that identified a prepared list of behaviors or items that were relevant to the task at hand. The presence or absence of the behavior was indicated by a yes or no with the completion of the behavior being observed. The recording of the completed list has helped to ensure the consideration of important aspects of the object or act observed. In the case of OJT, the sequence of events that have been learned and also the observed performance of the employee completing the assigned task have been an indication of

the evaluation of the OJT learning process. The OJT training checklist provided consistency in the materials presented from trainer to trainer and student to student. The use of the paper and pencil written test has also been used to determine competency of the OJT learner as a progression in the learning process. Research Project This paper has drawn from data gathered for an actual development of an onthe-job training program that was named Job Certification Program by the company and used techniques described in the literature review. The manufacturing facility was located in the Midwest and manufactured components for the entertainment industry. The highly technical process required employees to be skilled technicians who could respond to a changing and demanding manufacturing process and schedule. The customer demand required that the product delivery be shipped within three to five days from the initial order. The overall goal of the OJT program was to develop a training program that would provide a training base for a highly skilled and technical process that could respond to changing conditions and product demand. De Vinney and Tegler (1983) concluded from the data collected in their research that OJT has been the most important means of learning job responsibilities. The program development phase of the Job Certification Program has been presented to identify the theory and application of the OJT approach.

Qualitative research has used a technique called triangulation in collection and analyzing data. Fontana and Frey (2005) identified triangulation as a method to allow researchers to use different methods to achieve broader and often better results.

Qualitative data were gathered through focus groups, interviews and observations in order to understand the approach to learning, improvements with each of the unique processes and formulation of the on-the-job training procedures.

Kamberelis and Dimitriadis (2005) defined focus groups as unique and important formations of collective inquiry where theory, research, pedagogy, and politics converge. Focus groups were developed to examine and construct procedures by a panel of experts that were used to identify, organize and establish on-the-job training checklists. Tuckman (1999) described checklists as a list of events or procedures that led to a desired conclusion. The know-how of the panel of experts has been developed through actual job knowledge, performance and experience. The focus groups not only provided the expertise for the technical knowledge, but the procedures to effectively train a new employee in the specific process using OJT criteria.

The second procedure in the qualitative process has been the employee interview. Fontana and Frey (2005) described interviewing as a face-to-face verbal exchange that can be structured, semi-structured or unstructured. It can be used for the purpose of measurement or can be the understanding of an individual or group perspective (p. 698). Selected individuals were interviewed on the shop floor in an informal manner to collect impressions of the OJT training program. Records were collected during the development, implementation, and trial run of the OJT program and used to correct and improve the overall process. The responses were used to infer job satisfaction and competence with the new OJT process.

Observations by the focus groups have been a useful tool to compare the checklists with the actual step-by-step procedures of the process. Detailed accounts were recorded and documented to insure the accuracy of the checklists and training procedures. OJT Development. Stage I. Job Task Analysis Several teams consisting of supervisors, technicians, quality control and production employees were assembled in each of the eight production and support areas of the manufacturing processes. The OJT assigned task required each team to gather all data in their respective areas related to the description of the process, information dealing with process operations and any assumed information that had been used in the process but was not documented. The ISO 9001 preparation project had just begun at the company and all documents had to be written and placed in the controlled database for ISO certification. Liebesman (2006) described ISO 9001 as an effective quality management system (QMS) and compliance in meeting system requirements had been a starting point for achieving excellence in the organization. The ISO documentation process had helped to organize and compile huge amounts of data. Work instructions were written from the information collected from the task and detailed task analysis. The functions of the teams were very effective because each of the members of the different teams had hands-on experience with their respective process. Stage II. Cognitive Perspective

After many months of data collection, writing work instructions and process specifications, the information was compiled into an OJT training program format. The teams decided the sequence of operations for learning a specific process and then created a checklist to ensure those steps were followed. The process checklists were named to describe their function and were entered into the controlled document database of the ISO web-based document system. The ISO controlled document system was developed to ensure the consistency and accuracy of documents used in the manufacturing process and allowed only specific individuals to have the authorization to create or modify controlled documents. The ISO document system was a web-based library that was accessible to all employees through computer terminals or kiosk with read only access. Stage III. Role of the Trainer Volunteers from the focus groups were asked to be trainers and were given instruction in a train-the-trainer program using the process checklists that they had just created. McAteer (1991) concluded that the design phase would result in a simulation model prototype suitable for testing. Stage III procedures would test the

appropriateness of the simulation model with a sample of the target audience. The Job Certification Program has designated the trainer as a mentor, advocate, and instructor to correct, implement and encourage employee learning. The trainers would use the process checklists as a tool to train each other and the supervisors to test the consistency of the instruments. The validity and reliability of the process checklist were proven and any inconsistencies that were identified were modified to correct the anomalies. The team members then created an observation checklist that would identify

important characteristics of a process that needed to be completed in sequence and done correctly without leaving out any critical steps. The observation checklist would be used to verify the employees ability to perform the required task. Stage IV. Evaluation The validity and reliability of the observation checklist was tested by the team members and any inconsistencies were identified and the checklist modified. The observation checklists were then placed in the ISO document control system to insure consistency and current information. Trainers were assigned to their respective areas and a re-training program was completed for all employees using the new OJT processes and checklists.

ARTHUR E. BLAKEMORE AND STUART A. LOW* Race and the Acquisition ofand Returns to OJT for Youth

IN SPITE OF THE VITAL ROLE ASSIGNED TO ON-THE-JOB TRAINING in the development of human capital theory (see Becker [1975] and Mincer [1974]), direct empirical assessments of the impact of such training on an individual's future earnings are lacking.' Moreover, httle attention has been paid to the acquisition of on-the-job training (OJT). The reason for the absence of studies on training investment is that the process is estimable only if OJT is observable. In general, this has not been the case. Only Duncan and

HoflFman (1979) and Rosen (1981) have addressed the issue of acquisition. Both studies use the Panel Studies on Income Dynamics to impute the amount of OJT; and both studies predominantly examine the mature labor force. In this article, we are concerned with the OJT investment process for male youth in their early work years.^ Using data from the National Longitudinal Study of High School Seniors (NLSHS), we fully specify the decision rule used by male youth to select OJT and interact this decision rule with the employer's role in the process. Having empirically established the investment process in the first and last survey periods, the pecuniary returns to our direct measure of OJT are then examined.The NLSHS sample (23,451 high school seniors surveyed in 1972, with follow-up surveys between 1973 and 1976) is a particularly useful one for analyzing on-the-job training. Among this age group, the period of time available to amortize the costs of the training is at its peak value, so a great deal of OJT should be taking place. Also, any differential treatment of individuals at this stage of their work history will have long-run consequences for their *The authors are Assistant Professors of Economics, Arizona State University. 'The typical approach is to regress log linear earnings equations on work experience in its quadraticform. Mincer (1974) and Blinder (1976) have quite thoroughly derived the conditions behind such aspecification. Duncan and Hoffman (1979), however, use a more direct measurement of on-the-job trainingand obtain good results.

This research was partially funded by the College of Business Administration, Arizona State University,through the Faculty-Grant-In-Aid Program. We are grateful to William Boyes, Robert Flanagan, andreferees for this journal for helpful comments. Any remaining errors are our own.

INDUSTRIAL RELATIONS, Vol. 22, No. 3 (Fall 1983). 1983 by the Regents of the University of California. 0019/8676/83/I()15/374/$10.00 374 Race and Returns to Youth OJT I 375 income and employment during the life-cycle. If minority youth are less likely to accumulate OJT for any reason, the age-earnings profiles of white and black males will increasingly diverge. For these reasons, we concentrate on any racial differences in the individual's selection rule, the employer's role in producing OJT, and the returns to training. Our results generally agree with those of earlier research, particularly Flanagan's (1974). Among the young men in our sample, blacks and whites with OJT accrue nearly identical returns; black youths, however, appear to participate somewhat less in on-the-job training programs.

Acquisition of OJT Analyzing the acquisition of on-the-job training requires a preliminary effort to distinguish between general and specific training. In the

case of general training, it is recognized that all benefits, and hence all costs, accrue to the individual making the human capital investment. Since the individual owns the capital, and since the capital is fully transferable among alternative uses, the investment process is undertaken independent of employer influences. Thus, the selection rule for general training can be specified from an individual's perspectivethe present value of the expected benefits and the costs of the investment is all the information that is required. In contrast, when the training has a specific component, the employer may exert some infiuence. Specific training is nontransferable between places of employment. Thus, when the employer bears the full cost of the investment, any premature job severance causes capital losses. Likewise, when the employee pays the full cost of specific training, the full capitalized benefits of the investment may not be realized if the employment relationship is prematurely terminated. For these reasons, it is generally agreed that both employer and employee share the costs and returns of specific training, thereby insuring against losses caused by any unilateral job action. In this human capital framework, information in addition to an individual's expected benefits and costs is required to determine the selection rule when the training has any firm-specific component. As joint investors, both employer and employee must agree to the training and the terms of its shared ownership. Our measure of OJT refers to training occurring at the place of employment and, hence, should involve specific training. Consequently, the following general form for the selection rule of individual f is appropriate:

(1) OJT = S^ (1 + r)' ^ 0 for t = 1, . . . , n where EB, is the expected value of the benefit stream for OJT in period t, Ct is the expected cost of OJT in period t, and r is individual tsdiscount 376 / ARTHUR E. BLAKEMORE AND STUART A. Low rate. Since the selection of OJT by individual imust include the consent of the employer before OJT is undertaken, we get, in reduced form: (2) P(OJT) = f(EB,C,r,AB,ST) where P(OJT) is the probability of OJT occurring, AB is the perceived ability of worker ito successfully accumulate the training, and ST is the perceived employment stability (turnover propensity) of worker i. The sample.The NLSHS is a longitudinal data set consisting of a base survey in 1972 and follow-up surveys in 1973 through 1976. Since the sample is composed of high school seniors, the data are quite homogeneous with respect to years of high school completed and age. Other pertinent sample characteristics include the respondents' post-high school employment, training, and educational experience. Approximately 42 per cent of the entire sample report that they attended school in 1973, and 22 per cent are still enrolled in 1976. In 1973, about 65 per cent of all respondents (including those in school) are employed at least part-time, and nearly 7 per cent of the sample population are looking for work. In 1976, 74 per cent are employed and about 9 per cent are seeking work. The subsample used for statistical analysis in this study is restricted to males who do not attend college or participate in the military and who are employed on the survey dates.

Analysis.Because of the discrete and qualitative properties of equation (2), the acquisition of OJT can be estimated by probit analysis. The dependent variable is dichotomous, taking a value of one if the individual has received training from the current employer during the survey period and zero otherwise. Our OJT variable is constructed directly fi-om the response to training questions in the survey. The respondents are asked if any training has occurred, and if so, whether it is on-the-job training, registered apprenticeship, a manpower program, or a correspondence course. A direct measure such as this is preferable to the use of work experience or job tenure, the proxies used in most other studies of OJT, since all work experience is not of equal value in terms of training content. Direct measures are better able to detect whether training has taken place, although the exact intensity or quality of the program may not be determined. Duncan and Hoffman's (1979) and Rosen's (1980) studies are the only other research that includes a direct measure of OJT. ^ While the use of direct measures is preferable, it is not without problems. Some workers may not recognize that OJT has taken place and hence not 'Both studies use a variable constructed from a subjective questio n concerning the length of time necessary "to become fully trained" in the respondent's job and a question concerning the length of time on the job.

The Need for OJT

WHEN I WAS ABOUT 20 YEARS OLD, I SPENT A FEW months as equipment manager for my father's unionizedconstruction company. The semi-truck drivers who hauled the heavy equipment were Teamsters.I, being naive about the protocols of union contracts, became outraged one day when Jimmy, a Teamster driver, refused to move his big rig 50 yards because he was on break. An entire heavy erane crew was sitting idle, costing the company lots of money every minute of delay. After jiving humorously with Jimmy, expecting him to give in, I told him, "Well hell, then I'll move the damn thing." I knew just enough about driving a big rig 50 yards to be very hazardous to

the truck's health, and possibly Jimmy's livelihood, if Iended up sending it to the repair shop. After watching me grind a few gears, Jimmy acquiesced and moved the truck. That experience, combined with a later understanding of the monopolistic tendencies of labor unions, led me generally to dislike the unions and favor right-to-vvork laws. So I was initially pleased to read recently that, according to the Bureau of Labor Statistics and labor historians, private sector union membership has fallen to 6.9 percent of the work force - the lowest level in more than a century. But some bad comes with the good. On the surface, the American economy and businesses have done well with the demise of unions. After all, government legislation and regulation have made the workplace far safer and fairer by some standards. On the other hand, it may well be that it was the historic union support for politicians that brought many of these safety, health and fairness issues to the forefront. My real concern about the demise of private sector unions is much more pragmatic. In many of the traditionallyblue collar trades, unions provided thetraining ground for future generations of skilled and semi-skilled workers. This was especially apparent in the construction industry where aspiring young plumbers, electricians and carpenters got some basic training in classrooms at the union hall and a lot of OJT (on-the-job training). Labor contracts accommodated this method of training.OJT has a long history in the professional sector as well. In the 19th century, aspiring attorneys studied law under the mentorship of a practicing attorney. Even today, classroom education is not enough to become a competent doctor, nurse or school teacher. We seem to have lost sight of the need for OJT in most of the labor market. A young person needs

a family member or friend to show them the trade. Some argue that unions and even the American Medical Society attempted to curtail the supply of new tradesmen by restricting education and training programs or by making initiation into the profession too costly. Whatever the reason, we are relying more heavily on foreign workers to come to the U.S. to help us meet demand in the construction and health-care industries. At the same time we are failing to produce enough semi-skilled and skilled workers in key areas, we are running amok in educational programs run by schools funded by easy-to-obtain student loans. There are many stories about unemployed graduates from these programs, as the demand for their skill is just not there. Some colleges and universities are begin-

At the same time we are failing to produce enough semi-skilled and skilled workers in key areas, we are running amok in educational programs run by schools funded by easy-to-obtain student loans. To do a better job by advising students to pursuedual degrees one major you love and one that willget you a job. At the end of the day there is no substitute for educational and training systems that provide OJT simultaneously with the elassroom exposure or even in lieu of the classroom. Perhaps we need to rethink the future role of unions. We definitely need to rethink expected outcomes from community colleges and trade schools, as well as high schools and colleges. In the meantime the older generation needs to be bolder in working with tomorrow's young aspiring workers, and politicians need to re-engineer labor laws to accommodate and incentivize OJT. -^

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ARE EDUCATION AND TRAINING ALWAYS COMPLEMENTS? EVIDENCE FROM THAILAND KENN ARIGA and GIORGIO BRUNELLO*

This paper investigates the relationship between education and employer provided training, both on-the-job and off-the-job, using a unique dataset drawn from a survey of Thai employees conducted in the summer of 2001. The authors find a negative and statistically significant relationship between educational attainment and on-the-job training (OJT) and a positive and statistically significant relationship between education and off-the-job training. Since the marginal monetary returns to OJT increase with education, the negative relationship between education and OJT suggests that the

marginal costs of OJT are higher for the better educated, perhaps because the opportunity costs of the time spent receiving OJT increase with educational attainment. KennAriga is Professor of Economics, Institute of Economic Research, Kyoto University. Giorgio Brunello is Professor of Economics, University of Padova, CESifo Research Fellow, and IZA Research Fellow. The authors thank the TDRI (Thailand Development Research Institute), Andrea Bassanini, Edwin Leuven, SoichiOhta, Fumio Ohtake, HesselOosterbeek, NiponPoapongsakorn, FutoshiYamauchi, and the audiences at discussions held in Amsterdam, NYU, Osaka (ISER), Kyoto, Siena, and Tokyo (ADBI) for comments and suggestions. The financial support of the Asian Development Bank Research Institute is gratefully acknowledged. This paper was written while the second author was visiting Kyoto University. The data used in this paper, as well as the fullquestionnaire, are available for those interested infurther scientific research at http://www.kier.kyotou. ac.jp/21COE/ADBI-KIERdatabase.html#english.

The economic literature stresses the importance of schooling in increasing productivity. Schooling can affect productivity both directly, by improving basic skills, and indirectly, by influencing training. Are the better-educated more likely to receive employer-provided training? A positive association between education and training would stimulate individual productivity but would also have the socially undesirable effect of amplifying initial differences in the individual level of human capital in the labor market. In a recent review of empirical studies on employer-provided training in the United States and the United Kingdom, Blundell et al. (1999) answered the above question in the affirmative

and emphasized the strong complementarity between the three main components of human capitalearly ability, formal education, and training. In another review, Leuven (2005) attempted to explain the empirical regularity that more educated workers participate more in training than do less educated workers. One 614 INDUSTRIAL AND LABOR RELATIONS REVIEW reason the better-educated receive moretraining is that they are easier to train (see Blondal et al. 2002). According to Thurow(1975) and Rosen (1976), education improves learning skills and reduces (marginal) training costs. Since optimal investment in training occurs when marginal costs are equal to marginal benefits, a reduction in marginal costs increases investment.1 The empirical relationship between education and training can vary, however, with the type of training. Lynch (1992) usedU.S. data to distinguish between on-the-jobtraining (OJT) and off-the-job training (OFFJT) and found a positive, statistically significant relationship between education and OFFJT, but no relationship between education and OJT. Focusing on the concept of over-educationwhich occurs when workers are in occupations that require less schooling than they actually have Sicherman (1991) found that over-educated individuals received less OJT than individuals with lower education and interpreted this result as evidence that education and OJT are substitutes in the production of human capital. Since over-educated workers are more likely than other workers to quit and move to a more suitable job, employers are less willing to train them in firm-specific skills. Hersch (1991) obtained similar results and argued that the overeducated are less willing, or less able, to learn than are individuals with the suitable

level of education. The existing empirical studies focus mainly on developed countries. Schooling and training, however, are of perhaps even greater importance in developing countries, not only for increasing productivity growth but also for improving health and nutrition and reducing fertility and income inequality (see Berhman 1987, 1999). The current paper investigates the relationship between education and employer-provided training in Thailand, using the results of a survey of Thai employees conducted by a team led by one of the authors during the summer of 2001. The survey is a case study of 1,737 employees belonging to 20 large firms operating in four selected industries in the Bangkok area. These employees completed a questionnaire especially designed toelicit information on earnings, education, training events, and family background. Following Lynch, in our investigation we distinguish between OJT and OFFJT. The former is carried out in the workplace and is likely to be more specific in its content than the latter, which takes place in theclassroom either within or outside the firm.

CHAPTER 3

Methodology

Research Design

The researchers use Descriptive Method which describes the importance and advantages of On-the-Job (OJT) training to Management Accounting (MGA) course of the University of the East-Caloocan campus.

The descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic.

Respondents

The research will cover only the University of the East - Caloocan campus. Conducting a research study inside the campus is more convenient. It also helps to conserve time in gathering data and information.

The University of the East - Caloocan Campus (UE Caloocan) is a private university in Caloocan City, Philippines. It was open on June 1954, on a 4.86 hectare lot along 105 Samson Road, Caloocan City, Philippines. An autonomous unit headed by a Chancellor with the College of Business Administration, Arts and Sciences, Engineering, and Fine Arts. University of the East Caloocan is called Caloocan Campus to distinguish it from Manila Campus on Claro M. Recto Avenue.

Research Instrument

The research study entitled The importance of On-the-Job (OJT) training for Management Accounting (MGA) of the University of the East Caloocan need a structural survey questionnaire. The survey questionnaire includes questions that are related to On-the-Job (OJT) training that the respondents were ask to choose the best primary reasons to answer the questions written in the survey. The questions are given to determine the reasons or factors why the students were able or unable to have an On-the-Job (OJT) in their related courses and also to help the researchers to come up with an appropriate conclusions and recommendations in the study.

Data Gathering Procedures

The researchers conduct one method of gathering data which is descriptive method. The researchers use questionnaire it contains the personal data of the respondents and questions that are related to the topic. The data are gather from the respondents; Business Administration Major in Management Accounting (MGA) students in 4th year level of the University of the East Caloocan Campus. The respondents check their answer those that have specific choices. The data are gathered by conducting a survey in the University of the East Caloocan Campus. The data are classified according to three questions related to the topic The importance of On-the-Job (OJT) training for Management Accounting (MGA) students of the University of the East Caloocan Campus What is your perception of the importance of On-the-Job (OJT) program in terms of benefits and incentives, competence, training and development, and work habit? What is your perception on the significant effect of the On-the-Job (OJT) program in terms of student self development and student confidence? What are the respondent recommendations to improve the present non OJT program for Management Accounting (MGA) students?

Statistical Treatment

The researchers used the relative frequency distribution to present the result of the collected data. It also called percentage distribution that is express with the given formula.

fr = f n Where: rf relative frequency f frequency n- Total number of population

The total number of respondents was 53 Business Administration Major in Management Accounting (MGA) students. The respondents answered the given question from the survey questionnaires by their personal information and questions regarding the topic The importance and advantages of On -the-Job training for Management Accounting (MGA) students.

Good day! We are 4th yr. Management Accounting students from the University of the East Caloocan and conducting a research to determine the significant effect of OJT Program if implemented on the Management Accounting Course. Kindly answer the following questions correctly. The Researchers 1. Personal Profile Name :_________________________( optional) Age 14 -16 yrs.old 17 -19 yrs.old 20 -22 yrs.old Gender: Male

23 yrs.old and above

Female

2. What is your perception of the importance of OJT program in terms of the following? Please check using the rating scale below. 5 - Very important 4 - Important 3 - Moderately important 2 - Slightly important 1 - Not important

2.1Benefits and Incentives 5 4 3 2 1 1. Work experience. 2. It will develop skill and knowledge of students. 3. It serves as a training ground for a future career. 4. It can help you to be aware of your surroundings in a workplace. 5. If the trainee has a good performance maybe the company will hire him/her in the future. 2.2 Competence 1. You have enough knowledge. 2. You can be able to make decision. 3. Being well trained. 4. To be familiar in business transaction. 5. Professionalism will be developed. 2.3 Training and Development 5 4 3 2 1

5 4 3 2 1

1. You can apply what you have learned in school in a workplace. 2. Ability to work in teams. 3. Ability to make decision. 4. Work efficiency. 5. You will be able to aware of companys policy.

2.4 Work habit 1. Understanding business condition. 2. Disciplined toward good working habit. 3. Being competitive. 4. Costumer focus. 5. Being effective in work.

5 4 3 2 1

3. What is your perception on the significant effect of the OJT program in terms of the following? Please check using the rating scale below. 5 - Very significant 4 - Significant 3 - Moderately significant 2 - Slightly significant 1 - Not significant

3.1 Students self-development 1. Strategic skills will be developed. 2. Broaden your knowledge. 3. Persuasion and influencing skills developed. 4. Analytical skills will be enhanced. 5. Negotiation skills will be trained.

5 4 3 2 1

will

be

3.2 Student confidence 1. Awareness in developing self esteem. 2. Interpersonal communication. 3. Intrapersonal communication. 4. Personality development. 5. Ability to manage changes.

5 4 3 2 1

4. Recommendations to improve the present non- OJT program for MGA students. Please check using the rating scale below. 5 - Very important 4 - Important 3 - Moderately important 2 - Slightly important 1 - Not important

Recommendations 5 4 3 2 1 1. Conducting seminars related to the courses so that the student will be aware in any changes in accounting standard. 2. The school must offer OJT program to Management Accounting students. 3. Allow students to visit companies to understand their operation. 4. Discuss OJT programs to Management Accounting students if such OJT program is not intended for them. 5. Update students of the company operations. 6. Update Management Accounting students on the changes of Accounting Standard.

Chapter IV INTERPRETATION OF STATISTICAL DATA Researchers should describe their results clearly, and in a way that other researchers can compare them with their own results. They should also analyze the results, using appropriate statistical methods to try to determine the probability that they may have been chance findings, and may not be replicable in larger studies. But this is not enough. Results need to be interpreted in an objective and critical way, before assessing their implications and before drawing conclusions. Interpretation of research results is not just a concern for researchers. The mean or average is only meaningful if the data fall into a normal distribution curve, that is, they are evenly distributed around the mean. The mean or average, by itself has a limited value. The range of the data and their distribution (expressed in the standard deviation) must be known. It is sometimes more important to know the number or percentage of subjects or values that are abnormal than to know the mean.

1. Personal Profile Age 14 16 yrs. old 17 19 yrs. old 20 22 yrs. old 23 yrs. old and above Total Table 1.1 Frequency 0 19 26 8 53 Percent 0 35.85 49.06 15.09 100

Table 1.1 shows the age of the respondents out of 53, 0 is between the ages of

14 16 yrs old, 19 or 35.85 % are between the ages of 17- 19 yrs. old. 26 or 49.06 % are between the ages of 20 22 yrs. old and 8 or 15.09 % are between the ages of 23 yrs. old and above.

Table 1.2 Gender Male Female Total

Frequency 16 37 53

Percent 30.19 69.18 100

Table 1.2 shows the gender of the respondents, 16 or 30.19% are male and 37 out of 53 respondents or 69.18% are female Questions: 2. What is your perception of the importance of OJT program in terms of the following?

5 - Very important 4 - Important 3 - Moderately important

2 - Slightly important 1 - Not important

Table 2.1 Benefits and Incentives 5 Benefits and Incentives 1. Work experience. 2. It will develop skills and knowledge of students. 3. It serves as a 4 3 2 1 Weighted Mean Rank 4.72 1

43 81.14% 36

5 9.43% 12

5 9.43% 4

0 0% 1

0 0% 0

4.57

67.92% 22.64% 7.55% 1.89% 0%

training ground for a future career. 4. It can help you to be aware of your surroundings in a workplace. 5. If the trainee has a good performance maybe the company will hire him/her in the future.

34

15

4.53

3.5

64.16% 28.30% 3.77% 3.77% 0%

29

20

4.47

54.72% 37.73% 7.55%

0%

0%

33

15

4.53

3.5

62.26% 28.30% 9.44%

0%

0%

Table 2.1 shows the benefits and Incentives of OJT, work experience as one of the benefits and incentives of OJT has been chosen by 43 respondents or 81.14 % as very important, 5 or 9.43% as important and 5 or 9.43% as moderately important and with a weighted mean of 4.72 and rank as number 1. It will develop skills and knowledge of students has been chosen by 36 respondents or 67.92% as very important, 12 or 22.64% as important, 4 or 7.55% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.57 and rank as number 2. It serves as a training ground for a future career has been chosen by 34 respondents or 64.16% as very important, 15 or 28.30% as important, 2 or 3.77% as moderately important and 2 or 3.77% as slightly important and with a weighted mean of 4.53 and rank as 3.5. It can help you to be aware of your surroundings in a workplace has been chosen by 29 respondents or 54.72% as very important, 20 or 37.73% as important and 4 or

7.55% as moderately important and with a weighted mean of 4.47 and rank as number 5 and the last benefits and incentives is if the trainee has a good performance maybe the company will hire him/her in the future has been chosen by 33 respondents or 62.26% as very important, 15 or 28.30% as important and 5 or 7or 9.44% as moderately important and with a weighted mean of 4.53 and rank as 3.5.

Table 2.2 Competence 5 Competence 1. You have enough knowledge. 2. You can be able to make decision. 3. Being well trained. 4. To be familiar in business transaction. 5. Professionalism will be developed. 29 4 16 3 6 2 2 1 0 Weighted Mean Rank 4.36 3

54.72% 30.19% 11.32% 3.77% 0% 24 20 8 45.28% 37.74% 15.09% 29 16 8 54.72% 30.19% 15.09% 24 23 6 0 0% 0 0% 0 0% 0 0% 0 0 0% 0 0% 0 0% 4.47 1 4.26 4.40 5 2

4.34

45.28% 43.40% 11.32% 31 16 6 58.39% 30.19% 11.32%

Table 2.2 shows the competence that OJT will bring to an individual students especially Management Accounting (MGA) who serve as respondents. Competence number one, You have enough knowledge has been chosen by 29 respondents or 54.72 % as very important, 16 or 30.19% as important and 6 or 11.32% as moderately important and 2 or 3.77% as slightly important and with a weighted mean of 4.36 and rank as number 3. You can be able to make to decision has been chosen by 24

respondents or 45.28% as very important, 20 or 37.74% as important and 8 or 15.09% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.26 and rank as number 5.Being well trained as one competence has been chosen by 29 respondents or 54.72% as very important, 16 or 30.19% as important and 8 or 15.09% as moderately important and with a weighted mean of 4.40 and rank as number 2 among the rest. To be familiar in business transaction has been chosen by 24 respondents or 45.28% as very important, 23 or 43.40% as important and 6 or 11.32% as moderately important and with a weighted mean of 4.34 and rank as number 4 and the last competence is professionalism will be developed has been chosen by 31 respondents or 58.49% as very important, 16 or 30.19% as important and 6 or 11.32% as moderately important and with a weighted mean of 4.47 and rank as numbe1 among the rest.

Table 2.3 Training and Development 5 Training and Development 1. You can apply what you have learned in school in a workplace. 2. Ability to work in teams. 3. Ability to make decision. 4 3 2 1 Weighted Mean Rank

29

18

5 9.44% 7

1 1.89% 0 0% 0 0%

0 0% 0 0% 0 0%

4.42

54.72% 33.97% 28 18

4.40

52.83% 33.97% 13.20% 32 12 9 60.38% 22.64% 16.98%

4.43

4. Work efficiency. 5. You will be able to aware of companys policy.

33 13 7 62.26% 24.53% 13.20% 28 17 8

0 0% 0 0%

0 0% 0 0%

4.85

4.38

52.83% 32.08% 15.09%

Table 2.3 shows training and development if might be an OJT, one training and development is you can apply what you have learned in school in a workplace has been chosen by 29 respondents or 54.72 % as very important, 18 or 33.97% as important and 5 or 9.44% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.42 and rank as number 3. Ability to work in teams has been chosen by 28 respondents or 52.83% as very important, 18 or 33.97% as important and 7 or 13.20% as moderately important and with a weighted mean of 4.40 and rank as number 4. Ability to make decision is chosen by 32 respondents or 60.38 % as very important, 12 or 22.64% as important and 9 or 16.98% as moderately important and with a weighted mean of 4.43 and rank as number 2 among the rest. Work efficiency is chosen by 33 respondents or 62.26% as very important, 13 or 24.53% as important and 7 or 13.20% as moderately important and with a weighted mean of 4.85 and rank as number 1 and last is you will be able to aware of companys policy has been chosen by 28 respondents or 52.83% as very important, 17 or 32.08% as important and 8 or 15.09% as moderately important and with a weighted mean of 4.38 and rank as number 5. Table 2.4 Work habit 5 4 3

Work habit 1. Understanding business condition. 2. Disciplined toward good working habit.

Weighted mean Rank 4.53 1.5

33 15 62.26% 28.30% 31 18 58.49% 33.97%

5 9.44% 4 7.54%

0 0% 0 0%

0 0% 0 0%

4.51

3. Being competitive. 4. Costumer focus. 5. Being effective in work.

34 13 6 64.16% 24.52% 11.32% 28 18 7 52.83% 33.97% 13.20% 32 13 8 60.39% 24.52% 15.09%

0 0% 0 0% 0 0%

0 0% 0 0% 0 0%

4.53 4.40 4.45

1.5 5 4

Table 2.4 shows work habit that OJT might bring to an individual student especially Management Accounting (MGA), one of the work habit is understanding business condition which have been chosen by 33 respondents or 62.26% as very important, 15 or 28.30% as important and 5 or 9.44% as moderately important and with a weighted mean of 4.53 and rank as number 1.5. Disciplined toward good working habit is chosen by 31 respondents or 58.49% as very important, 18 or 33.97% as important and 4 or 7.54% as moderately important and with a weighted mean of 4.51 and rank as number 3. Being competitive has been chosen by 34 respondents or 64.16% as very important, 13 or 24.52% as important and 6 or 11.32% as moderately important and with a weighted mean of 4.53 and rank as number 1.5. Customer focus is chosen by 28 respondents or 52.83% as very important, 18 or 33.97% as important and 7 or 13.20% as moderately important and with a weighted mean of 4.40 and rank as number 5 and last is being effective in work as chosen by 32 respondents or 60.39% as very important, 13 or 24.52% as important and 8 or 15.09% as moderately important and with a weighted mean of 4.45 and rank as number 4.

3. What is your perception on the significant effect of the OJT program in terms of the following? 5 - Very significant 4 - Significant 3 - Moderately significant 2 - Slightly significant 1 - Not significant

Students Self Development 1. Strategic skills will be developed. 2. Broaden your knowledge. 3. Persuasion and influencing skills will be developed. 4. Analytical skills will be enhanced. 5. Negotiation skills will be trained.

Table 3.1 Students Self Development 5 4 3 2 1 Weighted Mean Rank

33 13 7 62.27% 24.53% 13.20% 34 13 6 64.15% 24.53% 11.32%

0 0% 0 0%

0 0% 0 0%

4.49 4.53

3 2

34 14 64.15% 26.41% 30 18 56.60% 33.96%

5 9.44% 4 7.55%

0 0%

0 0%

4.55

1 0 1.89% 0%

4.45

4.5

32 14 6 1 0 60.38% 26.41% 11.32% 1.89% 0%

4.45

4.5

Table 3.1 shows the students self development that an OJT program might bring a significant effect, one of the students self development is strategic skills will be developed has been chosen by 33 respondents or 62.27% as very important, 13 or 24.53% as important and 7 or 13.20% as moderately important and with a weighted mean of 4.49 and rank as number 3. It will broaden your knowledge is chosen by 34 respondents or 64.15% as very important, 13 or 24.53% as important and 6 or 11.32% as moderately important and with a weighted mean of 4.53 and rank as number 2.

Persuasion and influencing skills will be developed has been chosen by 34 respondents or 64.15% as very important, 14 or 26.41% as important and 5 or 9.44% as moderately important and with a weighted mean of 4.55 and rank as number 1 among the rest. Analytical skills will be enhanced is chosen by 30 respondents or 56.60% as very important, 18 or 33.96% as important and 4 or 7.55% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.45 and rank as number 4.5 and last is negotiation skills will be trained is chosen by 32 respondents or 60.38% as very important, 14 or 26.41% as important, 6 or 11.32% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.4.45 and rank as number 4.

Table 3.2 Student confidence 5 Student confidence 1. Awareness in developing self esteem. 2. Interpersonal communication. 3. Intrapersonal communication. 4. Personality development. 5. Ability to manage changes. 4 3 2 1 Weighted Mean

Rank

37 10 69.81% 18.87% 39 9 73.58% 16.98% 34 14 64.15% 26.41% 34 13 64.15% 24.52% 34 13 64.15% 24.52%

6 11.32% 5 9.44% 5 9.44% 5 9.44% 5 9.44%

0 0% 0 0% 0 0% 1 1.89% 1 1.89%

0 0% 0 0% 0 0% 0 0% 0 0%

4.58

4.64

4.55

4.51

4.5

4.51

4.5

Table 3.2 shows the student confidence in OJT, one is awareness in developing self - esteem as chosen by 37 respondents or 69.81% as very important, 10

or 18.87% as important and 6 or 11.32% as moderately important and with a weighted mean of 4.58 and rank as number 2. Interpersonal communication has been chosen by 39 respondents or 73.58% as very important, 9 or 16.98% as important and 5 or 9.44% as moderately important and with a weighted mean of 4.64 and rank as number 1. Intrapersonal communication is chosen by 34 respondents or 64.15% as very important,14 or 24.61% as important and 5 or 9.44% as moderately important and with a weighted mean of 4.53 and rank as number 3. Personality development is chosen by 34 respondents or 64.15% as very important,13 or 24.52 % as important, 5 or 9.44% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.51 and rank as number 4.5 and last is ability to manage changes is chosen by 34 respondents or 64.15% as very important,13 or 24.52 % as important, 5 or 9.44% as moderately important and 1 or 1.89% as slightly important and with a weighted mean of 4.51 and rank as number

4. Recommendations to improve the present non- OJT program for MGA students. 5 Very important 4 Important 3 Moderately important 2 Slightly important 1 Not important

Table 4 Recommendations to Improve the Non OJT program 5 Recommendations 1. Conducting seminars related to the courses so that the student will be aware in any changes in accounting standard 4 3 2 1 Weighted Mean Rank

44

4.81

83.02% 2. The school must offer OJT program to Management Accounting students.

15.09%

1.89%

0%

0%

48

4.85

90.56% 3. Allow students to visit companies to understand their operation.

5.66%

1.89%

1.89%

0%

40

4.55

75.47%

15.09%

1.89%

3.77%

3.77%

4. Discuss OJT programs to Management Accounting students if such OJT program is not intended for them.

46

4.83

86.79% 5. Update students of the company operations.

9.44%

3.77%

0%

0%

42

10

4.77

79.25% 6. Update Management Accounting students on the changes of Accounting Standard.

18.86%

1.89%

0%

0%

41

10

4.72

77.36%

18.86%

1.89%

1.89%

0%

Table 4 shows recommendations to improve the non OJT program of Management Accounting (MGA), among the recommendations are conducting seminars related to the course so that the students will be aware in any changes in accounting standard which have been chosen by 44 respondents or 83.02% as very important, 8 or 15.09% as important and 1 or 1.89% as moderately important and has a weighted mean of 4.81 and rank as number 3 among the rest. The school must offer OJT program to Management Accounting is chosen by 48 respondents or 90.56% as very important, 3 or 5.66% as important, 1 or 1.89% as moderately important and 1 or 1.89% as slightly important and has a weighted mean of 4.85 and rank as number 1. Allow students to

visit companies to understand their operation is chosen by 40 respondents or 75.47% as very important, 8 or 15.09% as important and 1 or 1.89% as moderately important, 2 or 3.77% as slightly important and 2 or 3.77% as not important and has a weighted mean of 4.55 and rank as number 6. Discuss OJT programs to Management Accounting students if such OJT program is intended for them has been chosen by 46 respondents or 86.79% as very important, 5 or 9.44% as important,2 or 3.77% as moderately important and has a weighted mean of 4.83 and rank as number 2. Update students of the company operation is chosen by 42 respondents or 79.25% as very important, 10 or 18.86% as important and 1 or 1.89 % as moderately important and has a weighted mean of 4.77 and rank as number 4 and last is update Management Accounting students on the changes in Accounting Standard is chosen by 41 respondents or 77.36% as very important, 10 or 18.86% as important, 1 or 1.89% as moderately important and 1 or 1.89% as slightly important and has weighted mean of 4.72 and rank as number 5

CHAPTER 5 SUMMARY, CONCLUSIONS, DISCUSSION AND RECOMMENDATION

SUMMARY Purpose of the Study The purpose of this study was to determine the advantage and significant effect of On-the-Job training for Management Accounting (MGA) student of the University of the East-Caloocan and if they are agree that the University must offer OJT program for Management Accounting course.

Restatement of Research Questions The research questions for this study were: (1)What is your perception of the importance of OJT program in terms of benefits and incentives, competence, training and development and work habit? (2) What is your perception on the significant effect of the OJT program in terms of students self development and student confidence (3) what are the respondents recommendations to improve the present non-OJT Program for the management accounting students? Research Methodology The researcher used descriptive research methodology and survey techniques to collect data from the respondents which are 4th year level of Management Accounting of the University of the East-Caloocan. Data collected from the survey respondents represented their perceptions regarding the advantages and significant effect of OJT in terms of benefits and incentives, competence, training and

development, work habit, students self development and student confidence and the respondents recommendation to improve the non-OJT program for Management Accounting students of the University of the East-Caloocan. Respondents completed a survey questionnaire that addressed their perceptions regarding the advantages and significant effect of OJT for MGA students. A description of the respondents was identified by gender and age. During the week of January 21, 2013, the respondents were given a survey questionnaire. They were requested to complete the questionnaire and to return it to the researcher as soon as possible. Over a three week period ending February 4, 2013, 53 surveys were returned and subsequently analyzed. Results Of the total surveys analyzed, 30.19 percent were male and 69.81 percent were female with the age of 14-16 yrs. Old with 0 percent, 17-19 yrs. Old with 35.85 percent, 20-22 yrs. Old with 49.06 percent and 23 yrs. Old and above with 15.09 percent which are provided in Table 1 and Table 2. Table 2.1 provided data relating to the perception of the respondents of the importance of OJT in terms of benefits and incentives, respondents choose work experience as one of the most important advantage of OJT, second is it will develop skill and knowledge of students, third are it will serve as a training ground for future career and if the trainee has a good performance maybe the company will hire him/her in the future. Table 2.2 provided data in terms competence which is professionalism has been chosen by the respondent as the most important, next is being well trained,

and third is you have enough knowledge, fourth is to be familiar in business transaction and last is you can be able to make decision. Table 2.3 provided data in terms of training and development, respondents choose work efficiency as one of the most important benefit of OJT when it comes to training and development, next is ability to make decision, third is you can apply what you have learned in school in a workplace, fourth is ability to work in teams and last is you will be able to aware of companys policy. Table 2.4 provided data relating to work habit; a respondent choose understanding business condition and being competitive as most important among the rest, next are disciplined toward good working habit, third are being effective in work and last is customer focus. Table 3.1 provide data relating to the questions on the significant effect of OJT program in terms of students self development, respondents choose persuasion and skills will be developed as one of the most significant effect of OJT, next is it will broaden your knowledge, third is strategic skills will be developed, and last are negotiation skills will be trained and analytical skills will be enhanced. Table 3.2 provide data relating to student confidence, respondents choose Interpersonal communication as one of the most significant effect when it comes to student confidence , next is awareness in developing self-esteem, third is intrapersonal communication, and last are personality development and ability to manage changes. Table 4 provide data relating to the recommendations of the respondents to improve the present non-OJT program for Management Accounting students of the University of the East-Caloocan, respondents choose a recommendation that the school must offer OJT program to Management Accounting students. Next is, OJT

program must be discussed to Management Accounting students if such OJT program is not intended for them. Third is, conducting seminars related to the courses so that the student will be aware in any changes in accounting standard. Fourth is, updates students of the company operations. Fifth is, update Management Accounting students on the changes of Accounting Standard and last is allow students to visit companies to understand their operation. Conclusions The findings in this study indicate a positive perception by the respondents regarding the advantages and significant effect of OJT for MGA. They indicated that the school must offer OJT program for Management Accounting so that the students must be aware of the possible outcomes of having an OJT program. In the results of this study respondents are aware of the advantages and significant effects of OJT among of them are; you will be having a work experience that you can be used in the future and it serve as a training ground for future career and so on. They also have knowledge and information what the OJT is all about and how important it is for student like them without having an OJT in their respective course. Recommendations Based on the findings of this study to determine the advantages and significant effect of On-the-Job training for Management Accounting of the University of the EastCaloocan, it is clear that the respondents make same perception regarding the OJT program which the present Management Accounting course does not have. In order to

address these, it is recommended that the school must offer an OJT program for Management Accounting students so that the student will be updated for any changes in any business operation or condition, or for any trend in business.