Firm-Based Training in P. R China

LIU Yufeng

Central Institute for Vocational & Technical Education,

Ministry of Education, P. R China

Outline

1.Quality of employed people in P. R China

2.Current situation of firm-based training

3.Important training programs

4.Problems and the way forward

The background of firm based training in P.R China

• During the transition process, Chinese government put forward:– Two changes:

• Economy system will change from plan system to market system

• Economy growth will be from extensive way to intensive way

– Objective of state-owned enterprises reform:• To establish modern enterprises system

Average education years per person in 1982,1990, and 2000

Year Total number of employed

persons (10000 persons)

Average education year per

person/year

1982 45295 5.811990 64749 6.812000 72085 7.99

Average education years per person in different industries in 1982Illiteracy

/ Semi Illiteracy

Primary Junior sec.

Senior sec.

2-3 year higher ed.and above

Average Ed. year

Percentage 28.20 34.38 26.01 10.54 0.87 5.81

Prim. Industry

35.90 37.16 21.47 5.43 0.04 4.82

Sec Industry

7.75 30.68 39.93 20.06 1.58 8.05

Tertiary

Industry4.98 20.48 36.88 32.01 5.64 9.29

Average education years per person in different industries in 1990

Illiteracy/ Semi

Illiteracy

Primary Junior sec.

Senior sec.

2-3 year higher ed.and above

Average Ed. year

Percentage 16.92 37.83

32.31 11.07 1.87 6.81

Primary Industry

22.25 45.10

28.15 4.45 0.05 5.78

Secondary Industry

3.21 22.22

48.33 22.74 3.50 8.97

Tertiary

Industry2.83 14.8

736.87 35.05 10.37 10.08

Average education years per person in different industries in 2000

Illiteracy/ semi.

Illiteracy

Primary Junior sec.

Senior sec.

2-3 year higher ed.and above

Average Ed. year

Percentage 8.14 32.84 41.70 12.65 4.66 7.99

Primary Industry

11.82 43.13 40.31 4.61 0.14 6.79

Secondary Industry

1.44 17.32 52.84 22.43 5.95 9.44

Tertiary

Industry1.54 11.53 36.52 31.42 18.99 10.79

Average education years per person in different industries

28. 2

16. 928. 14

34. 38

37. 83

32. 84

26. 0132. 31

41. 7

10. 54 11. 0712. 65

0. 87 1. 87 4. 66

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1982 1990 2000

2- 3 year hi gher ed. andabove

Seni or sec.

J uni or sec.

Pr i mary

I l l i t eracy/ semi .I l l i t eracy

The situation of skilled workers in China

• Quantity is not enough, and structure is not rational;• Total quality is not high, and the skill level is comparatively

low;

• The percentage of high skilled worker is only 3.5%, the structure of primary, middle, high skilled workers, technician, and advanced technician appear the structure of pyramid;

• The age of high skilled workers is comparative high, there is a serious shortage of technician and advanced technician.

• The loss of skilled workers from state-owned enterprises is very serious.

The impact of unqualified workers on production

• Only 70% products in China is up to standard， almost 200 billion RMB is lost every year due to unqualified products.

“Suggestions on bring the industries, enterprises into full play into TVET”

• Enterprises:all staff training, and whole process training;

• Train employed staff in cities and towns 50 million person-time every year at the end of the “tenth-five plan”;

• Train laid-off for re-employed;

• Lay down staff education and training program, establish and improve staff training system.

• 1.5% of total wages should be used for staff training, and for some enterprises which undertake heavy training task, and which require high skill for staff, this percentage could be up to 2.5%.

Firm Training Organization

• Training Center which is usually compose of :– Managing staff training institute– Engineering staff training institute– Technology school– Advanced skilled worker training center– Staff and worker’s school– Skill authenticating center

Goal of firm-based training

• for To provide service the development of firm: – to grasp the training direction;– to determine training focus;– to adjust training contents, – and finally to provide qualified

personnel for the development of firm.

• To improve the career development of staff

Firm demand analysis

• Demand analysis:– The combination of up-bottom

and bottom-up method– Bottom-up method– Job analysis(ISO10015)

Training Contents

• Morality;• Modern management knowledge and

method;• Vocational specialized knowledge;• General culture and specialized basis

knowledge(Suggestions on strengthening training to improve the quality of staff during the “seventh five plan”, 1986)

Classification of training contents

• Workers:– skill– Multi-skill – Vocational

qualification certificate

– Technician

• Management staff ：– Establish modern

enterprise– WTO basic rules– Industry and commerce

management– adaptability short time

training

training program to foster high skill workers

• In September in 2002, MOLSS begin to implement “National training program to foster high skill workers”. The objective of this program is: aim at the urgent demand of enterprise production, take practical and effective measures to foster skilled workers, especially high skilled workers. Strive to increase obviously the number and percentage of skilled workers and high skilled workers after 3 to 5 years.

Re-employment and open one’s own business training program

• From 1998 to 2000, launched the first stage of “” “Three year 10 million” retraining program for employment. It provided vocational guidance and skill training for 13 million laid-off , the re-employment rate was up to 60% after training.

• From 2001 to 2003, launched the second stage of “Three year 10 million” retraining program for employment. In 2002, provided training for 5.18 million laid-off , and re-employment rate was 63%； provided open one’s own business training for 0.31 million people, among them 0.18 million self-employed or opened his/her business.

Training in Haier Cooperation

• “Human being based training”;• Combine training with qualification

of working;• Individualized training according to

individual career design; • Training principles:

– train what need, fill up what lack, train urgent content first, and set up a pole and see its shadow.

• Training forms:– On-site,case, and interaction.

First Automobile Corp.• Regard training as one of priorities;• Work out HR development program and year plan;• Merged former 4 VET institutes into training center; • Increase investment in training: from 1.5 to 2.4% of

total staff wages;• Training for all: operating workers, skill

management staff and administrative staff;• “Ascend a height ”plan;• Open “green way” to distinguished persons;• Train multi-skilled workers:

electrician and fitter.

Some experiences of firm-based training (one)

• Attach importance to staff training (key qualifications/competences, multi-skills, technology development and innovation, competitiveness, security, etc);

• Increase investment in training (6-7%, 4%, 2% of total staff salary, etc)

• Establish training stimulating system, and make it complete:– Integrate staff training with skill appraisal;– “No license, no job” system– higher lever, higher position， higher salary system;

Some experiences of firm-based training (Two)

• Establish training basis with excellent training equipments;

• Demand analysis: of training contents development method;

• Training and examination done by different persons;

• Cooperative training with outside educational or training institutes, with foreign countries’；

• Attach importance to core competency training, multi-skills training;

• Etc.

Challenges and opportunities faced by firm-based training

• Globalization

• WTO

• Shorter scientific and technological renovation circle

• Production style change: from extensive to intensive;

• “No certificates, no job” system

Problems of firm-based training• Lack of comprehensive plan of training for firm

staff.• The investment in firm staff training is not enough,

and input-output ratio is not high. • There is a big contradiction between work and

training, the backbone of production can not meet the requirement for skill innovation.

• Teacher/trainer can not meet the training demand.• The stimulating system, restraining system, and

evaluating system have not been established.

Train of thought for the development of firm-based training(one)

• To establish firm-based training system and make it perfect gradually. – to establish vocational qualification

certificates system for industry and commerce management;

– to improve “Train in Rotation System”

– to improve evaluation system of training quality

Train of thought for the development of firm-based training(two)

• To strengthen the development of training bases, teacher/trainer contingent, and teaching/training materials;

• Introduce modern training methods; • To increase the investment in training• Industrialization and market-oriented.• To establish a training system for

small and middle sized enterprise.

Thanks