On-the-job training focuses on the acquisition of skills within the work environment generally under normal working conditions. Through on-the-job training, workers acquire both general skills that they can transfer from one job to another and specific skills that are unique to a particular job. On-the-job training, typically includes verbal and written instruction, demonstration and observation, and hands-on practice and imitation. In addition, the on-the-job training process involves one employee—usually a supervisor or an experienced employee—passing knowledge and skills on to a novice employee.

On-the-job training is the oldest form of training. Prior to the advent of off-site training classrooms, the only practical way of learning a job was working along side an experienced worker in a particular trade or profession—as evinced by the practice of apprenticeship during the Middle Ages when master craftsmen passed on skills and knowledge to novices who worked along side them.

On-the-job training is still the predominant form of job training in the United States, particularly for nonmanagerial employees. Numerous studies indicate that it is the most effective form of job training. The largest share of on-the-job training is provided by the private sector, though the most widely studied training programs are those sponsored by federal legislation.

On-the-job training programs range from formal training with company supervisors to learning by watching. In this sense, the most formal types of on-the-job training are distinct from classroom training largely in that they take place within the firm. In the face of increased international competition and the more widespread use of computers in production processes, the implementation of more formal and sophisticated kinds of on-the-job training has become a critical issue for firms.

Two different types of