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On-the-job training (OTJ) is an important topic of Human Resource Management. It helps develop the career of the individual and the prosperous growth of the organization. On the job training is a form of training provided at the workplace. During the training, employees are familiarized with the working environment they will become part of. Employees also get a hands-on experience using machinery, equipment, tools, materials, etc. Part of (OJT) is to face the challenges that occur during the performance of the job. An experienced employee or a manager are executing the role of the mentor who through written, or verbal instructions and demonstrations are passing on his/her knowledge and company-specific skills to the new employee. Executing the training on at the job location, rather than the classroom, creates a stress-free environment for the employees. On-the-job training is the most popular method of training not only in the United States but in most of the developed countries, such as the United Kingdom, China, Russia, etc. 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. On-the-job training is easy to arrange and manage and it simplifies the process of adapting to the new workplace.OJT is highly used for practical tasks. It is inexpensive, and it doesn’t require special equipment that is normally used for a specific job. Upon satisfaction of completion of the training, the employer is expected to retain participants as regular employees.  
On the job training is one of the earliest forms of training in the United States. The method is used when trained professionals are passing their knowledge to the recruit. The OJT method dates from back in the days when not everyone was literate, and it was the most convenient way to understand the requirements needed for the new job, on a one-to-one basis. In antiquity, the work performed by most people did not rely on abstract thinking or academic education. Parents or community members, who knew the skills necessary for survival, passed their knowledge on to the children through direct instruction. This method is still widely used today. It is a frequently used because it requires only a person who knows how to do the task and use the tools to complete the task. Over the years, as society grew, on the job training has become less popular. Many companies have switched to doing simulation training and using training guides. Businesses now prefer to hire employees who are already experienced and have a required skill set. However, there are still many companies who feel that OJT is best for their employees.
The concept of Observational Learning was introduced by Albert Bandura. Bandura’s Social Cognitive Theory.  Bandura believes that people learn best by observing others. According to his theory, people must pay attention to those around them first, retain what they have observed, and try to reproduce it. Bandura’s theory is implemented in the aspect of on the job training, where the new employees observe first their trainer completing the tasks, before trying to perform the task themselves. After observing for some time, typically, they will imitate the action they had observed. This is exactly how on-the-job training is expected to occur, if necessary until the new employee is can perform the task on their own.
On-the-job vs Off-the-job training
There are two methods used for training new employees: on-the-job training and off-the-job training (training simulation). Both methods are effective, however, they are very different and require specific measures. On-the-job training refers to the training provided at the actual job location by an experienced supervisor or manager who is passionate about their job and will relay the information to the newly hired, whereas the off-the-job method involves giving training to the employees at a place other than the real job location, where simulations, videos, and tests are replacing the human interaction. Off-the-job training is usually executed from an outside vendor outside of the company. Key Differences Between On-the-job and Off-the-job training include but are not limited to: 
|Category||On-the-job Training||Off-the-job Training|
|Location||Imparted at the actual job location||At a place other than the real job location|
|Time Consumption||Less time||More Time|
|Learning Method||Learning by doing the task||Learning by acquiring knowledge.|
|Effect on Production||No, because trainees produce the products during learning||Yes, because first training is provided which is followed by a performance|
|Who Performs the Training||Employees, vendors or managers||Experts outside of the company|
On-The-Job Training Plan
On the job training and development is a form of investment in human capital. In order to be executed efficiently, it needs a good on-the-job training plan in place. The initial cost for the company is the time spent on training and the resources used, such as trainee time and equipment. When the training plan is well executed, the return on investment for the company is imminent and the result is an increase in productivity. On-the-job training is based on the requirements of the job description and is specific for each company. Every company is unique and requires a unique approach when it comes to creating a training program. Key elements of the training plan are measures, such as working hours, due date and evaluation. Another key element is the choice of a coach assigned to the project. In order for the plan to be effective, a knowledgeable coach, a co-worker, a vendor or manager with an excellent leadership skills set needed to conduct the training.  Research shows that companies who invest in teaching their managers how to train new employees are more successful. They can articulate their beliefs to reinforce their ideas with employees. Having the knowledge and the understanding of companies culture makes them a perfect example of what is required from the new employee. Using managers to train employees is an effective on-the-job training strategy because it allows them to connect the training to the actual operation that employees will conduct in a daily working routine.  Training employees to train coworkers is another effective strategy since they are familiar with the company’s culture, strengths, and weaknesses. As well as making it easier for the new hire to get to know the team. An experienced employee is the ultimate choice for a trainer (business)
 Some guidelines for developing and implementing an effective on-the-job training program include and are not limited to: - Understanding the company's needs. - Identifying the skills and knowledge required in an employee. - Inclusiveness when selecting an employee for training. - Evaluation. Evaluating each trainee will determine the effectiveness of the training, resulting in increased performance - Follow-up. Feedback helps determine how much of the training employees are retaining and using.
Advantages and Disadvantages
There are both advantages and disadvantages to on-the-job training. Before deciding which type of training is most beneficial, companies need to weigh out if there are more disadvantages than advantages of the training method. If that’s the case, they need to opt out from the OJT and look for better options.
On-the-job training is beneficial for both employers and employees. For the employers, OJT is beneficial because it narrows down and prepares the skilled employees who are right for the company. 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. Employees trained in the job are an important asset for the company because they can cover more areas than just the tasks in their job description. OJT 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. On-the-job training is cost-effective.  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. During OJT, they are engaged in the real production process instead of the simulated learning process. The new teammate is being introduced to the team and the company’s values during the first step of the OJT. On-the-job training leads to more opportunities to grow within the organization. 
On-the-job training can be of disadvantage for the company when the new employee doesn’t have the required skills. This will result in more time needed for the training to be completed and will cost the company more since it takes the trainer and materials out of production for the duration of the training time. OJT can often cause distraction of the regular working day which can affect productivity. If employees are not introduced to the safety features and in safety precautions are not taught prior to entering the job field, there could be injuries since OJT is most often used for practical tasks and working with machinery. Such an issue can cause a company a lawsuit and loss of assets. Finally, oftentimes OJT is rushed and that can cause a negative effect on productivity.
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