On The Job Training

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Written by:

Jerry G


Date added:

December 29, 2012








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5 / 1178


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Less-experienced workers often engage in ”learning by doing”; they acquire new skills simply by observing more-skilled workers, filling in for them when they are ill or on vacation, or engaging in informal conversation during coffee breaks. 1.1 Costs and Benefits Like formal education, on-the-job training entails present sacrifices and fu- ture benefits...
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It thus is an investment in human capital and can be analyzed through the net present value and internal rate of return frameworks. In de- ciding whether to provide on-the-job training, a firm will weigh the expected added revenues generated by the training against the costs of providing it. If the net present value of the training investment is positive, the firm will invest; if negative, it won’t...
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