On-the-job training (widely known as OJT) is an important topic of human resource management.
Its effectiveness is based on the use of existing workplace tools, machines, documents and equipment, and the knowledge of specialists who are working in this field.
Parents or community members, who knew the skills necessary for survival, passed their knowledge on to the children through direct instruction.
On-the-job training was deemed an investment like school because while they differ in effects on earnings, both improve people's physical and mental abilities and raise real income prospects.
Additionally, one of the earlier forms of on-the-job training can be traced back to the middle ages dating as early as the 5th to 15th century.
During this time, apprenticeship was a system by which "men and women in pre-industrialized societies acquired skills necessary to become a specialized artisan"[4] (Goddard, 2002).
On-the-job training is when employees observe the processes and procedures that their employer uses to create an efficient and effective workplace.
Whether that is learning how to operate specialized machinery and equipment or observing methods that facilitate the employee to perform specific jobs.
Usually, this is done by shadowing an experienced employee who can give hands-on instructions and training, which can help develop the skills and knowledge needed to carry out roles in the company effectively.
On-the-job training is a cheaper option as companies usually do not need to pay for external professional development classes, instead employees gain knowledge from within their workplace.
Off-the-job training takes more time and is most often expensive as the company is required to hire external trainers or pay for conferences and classes.
Companies prefer hands-on learning because it helps individuals retain more information, which, as a result, would cause fewer errors.
When the training plan is well executed, the return on investment for the company is imminent and the result is an increase in productivity.
Key elements of the training plan are measures, such as working hours, due date and evaluation.
An experienced employee is the ultimate choice for a trainer (business)[9] Some guidelines for developing and implementing an effective on-the-job training program include and are not limited to: - Understanding the company's needs.
By the end of the training process, the company's values, strategy, and goals are introduced and resulting in an employee's loyalty to the business.
On-the-job training creates a culture which extends past the bare minimum required by the job and allows continuing education as part of the working process.
As a result, an uninterrupted production process increases the company's gains when opting out from the need of an initial investment for an off-site training.
[11] For employees, on-the-job training is beneficial because it allows them to learn a new skill or qualification within their field of work in a timely matter.