Question

A new start-up has decided to hire software engineers. Its managers have decided to resort to on-the-job training for the freshers.

Do you endorse this decision taken by the managers ? Justify your answer with a valid explanation.

Hint:

Say yes. On-the-job training adds to skill and productive capacity, helps workers adapt to technology, and its benefits outweigh its costs.

Answer 1

Step 1: Understanding the Question:
On-the-job training means training given to a worker while the worker is doing the actual work at the workplace.
The start-up will hire freshers who are software engineers. We must say if this choice is right and give a reason.
This question belongs to the topic of human capital formation. Spending on training is one of its sources.

Step 2: Stating the answer:
Yes, I endorse the decision of the managers. On-the-job training is a sound choice for the start-up.

Step 3: Justification 1: It adds to the skill of workers:
Freshers know theory but often lack hands-on skill. Training at the workplace teaches them the real tools and methods of the firm.
Skilled workers add more to the productive capacity of the firm.

Step 4: Justification 2: It helps workers adapt to new technology:
Software work changes fast. On-the-job training lets employees learn modern technologies as they work.

Step 5: Justification 3: Benefits are more than the cost:
The firm spends money on training, but it gets better output, fewer errors and more efficient staff in return.
That is why firms encourage such training. The gains outweigh the costs.

Step 6: Link with human capital:
Expenditure on on-the-job training raises the ability of workers. So it is a source of human capital formation.

Final Answer:
Yes, the decision is right. On-the-job training adds to the skills and productive capacity of the freshers and adapts them to modern technology. The benefits outweigh the cost, and it is essential for human capital formation.