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Preface

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In this context, the Korean government has paid great attention to apprenticeship system as a way to revitalize youth employment and effectively link skill development with skill utilization. The Korean Ministry of Employment and Labor (KMOEL) established the apprenticeship system in 2013 and expanded it with the goal of accommodating 120,000 apprentices by 2022. As a public research institute on vocational education and training policies, Korea Research Institute for Vocational Education and Training (KRIVET) publishes this book, with support from the Korean Ministry of Employment.

The first and second chapters provide an overview and current conditions of the Korean apprenticeship system. The fourth and fifth chapters examine outcomes, challenges and policy implications of the Korean apprenticeship system. It is expected that this book will help international readers to get a big picture of our apprenticeship system and provide practical implications for improving their apprenticeship.

Table 4-5 ∙ Data collection ·····························································································91 Table 4-6 ∙ Recognition on social outcomes of apprenticeship at the national level ·····92 Table 4-7 ∙ Recognition on social outcome
Table 4-5 ∙ Data collection ·····························································································91 Table 4-6 ∙ Recognition on social outcomes of apprenticeship at the national level ·····92 Table 4-7 ∙ Recognition on social outcome

Background

Types

Governance and Finance

Initially, only current employees could participate in the programs, but the target group has expanded to include currently enrolled students, with the introduction of high school, college and IPP apprenticeship programs. There are four types of internships for students: a) high school internship, b) Uni-Tech, c) college internship, and d) IPP (Industry Professional Practice) internship. The students from secondary schools are recruited in the second semester of their first year, after learning about the various companies where they will be trained over the next two years as part of their internship programs.

However, since the regulations on apprenticeship were not determined by law, it was first implemented based on the 「Regulations for the Management and Evaluation of Apprenticeships」. The new law includes articles for the implementation of apprenticeships, such as the promotion system, the implementation of training, the obligations of the training company and the apprentice, assessment and qualifications, the employment contract for training and the continuous employment of apprentices5). Establishing an advanced apprenticeship plan Article 7 Consultation on important apprenticeship matters Article 8 Building a network system between the apprenticeship company and job seekers.

Table 1-1 Overview of apprenticeship types
Table 1-1 Overview of apprenticeship types

Overall State

Companies

Apprentices

Student apprenticeships have the highest proportion of secondary school programs, followed by IPP, Uni-Tech and university apprenticeships. A large number of the companies are active in mechanical engineering, which accounts for the total number of participating companies. The proportion of young people participating in the apprenticeship system is high because it was introduced to solve youth unemployment issues and is intended for currently enrolled students or new workers.

A high proportion of the apprentice participants are either specialized vocational high school/master high school students or graduates who sign up for apprenticeships. The proportion of high school students or graduates (53.6%) is higher than students or graduates of higher education (41.8%). In addition, the proportion of students or graduates from vocational education (specialized/meister high school + college, 52.8%) is higher than the students or graduates from general education (general high school + university + master, 42.6%).

Table 2-1 The Number of companies and apprentices(2014~2020)
Table 2-1 The Number of companies and apprentices(2014~2020)

General Procedure

Selecting Company and Training Center

Training In-company Trainer & HRD Staff

Selection and Treatment of Apprentices

Program Development and Verification

Operation of OJT & Off-JT

Internal & External Evaluation

Monitoring

The apprenticeship program process begins with the recruitment and selection of companies and training centers by HRD Korea. ① The training program developer analyzes the process and function of the company and records the results of the analysis in the training program development report (submit the training program development report containing the results of the function analysis). ⑬ The training program developer must include all internal evaluation questions for all competency units in the training program development report.

⑭ The training program developer creates an internal evaluation plan and includes this plan in the training program development report. The training program developer decides on the assessment methods in consultation with the company (mandatory). Source: Ministry of Employment and Labor (MOEL) & Korea Human Resource Development Service (HRD Korea) (2017). The main factors that will be checked include a) the quality of the program, b) the standardization of the program by job type and level, c) the state of the company's competence and d) the applicability of the NCS.

The company and training center must keep related documents such as test sheets, results and scores for three years. The company and the training center will confirm the final list of candidates who have passed the internal evaluation for the entire competency unit in the training program, and it will be submitted to the HRD Korea. The training center-led type coordinates its own monitoring team; and report the operational status of the partner companies to the regional department of HRD Korea.

The training center manages the partner company and reports the results to the regional department of HRD Korea. In the case of the training center, the regional department will check the monitoring result. Chapter Ⅲ Development and Operation of an Apprenticeship Program 77 . the learning activities, which are submitted monthly; and after verifying that there was no reason for disqualification, they would pay a training assistance fee.

Figure 3-1 General procedure of apprenticeship program operation
Figure 3-1 General procedure of apprenticeship program operation

Economic Outcomes

Social Outcomes

To analyze the financial outcome of the apprenticeship, Jeon et al. (2018) conducted cost-benefit analysis using data from the apprenticeship survey. Economic and Social Outcome of Apprenticeship (Jeon et al., 2015)” only showed the economic results of apprenticeship training at company level as net benefit (benefit - cost), and it was difficult to examine the long-term results for different stakeholders. Elements of accrued costs cover all three levels, including government level (operating fund including government grants), company level (cost of apprentices, cost of in-house trainers and HRD staff, cost of recruitment and cost of training) and apprentice level (transport fee, opportunity cost).

Similarly, the elements of benefit obtained also cover all three levels, government level (apprentice income tax), company level (apprentice productivity, benefit of long-term employment), apprentice level (apprentice income, reduction of costs incurred during the employment period). The net present value (NPV) is obtained by converting all costs and benefits that arise during the analysis period into their present value and taking into account the difference between the present value of the benefits and the present value of the costs. A proposed alternative will make sense from a policy-making point of view if the benefit converted to present value is greater than 0 (NPV>0).

The B/C ratio is calculated by dividing the present value of the benefit by the present value of the costs, after all costs and benefits incurred during the analysis period have been converted to their present value. The 2020 Apprenticeship Survey was conducted in November 2020 as an effort to monitor the outcomes of the policy, including questions about the current status and outcomes of apprenticeships.23). Respondents to the survey assessed the social outcomes of apprenticeship on several indicators that could be divided into three levels: national level, company level and individual level.

Training center staff were asked to assess the social outcomes of apprenticeship at national level across several indicators, such as reducing youth unemployment, lowering the age of first employment, shortening the the job search period, and reducing the mismatch between labor supply and demand. The social outcomes of apprenticeship at company level were evaluated across twelve indicators, including improvement in product quality, reduction in production costs, contribution to long-term employment, training of manpower needed by the company, and reduction of the retraining costs and the probationary period of new employees. employees. Most indicators achieved high scores, with mean values ​​just below 4 or higher at 5, reflecting respondents' positive reception of the social outcomes of apprenticeship at company level.

The staff of the training center evaluated the social results of the apprenticeship on an individual level through 7 indicators, such as improvement of work performance, improvement of flexibility in the workplace, increase of interest in work.

Figure 4-1 Economic outcomes of apprenticeship(cost-benefit analysis) model
Figure 4-1 Economic outcomes of apprenticeship(cost-benefit analysis) model

Changes in policy environment

Flexibility

Participation of companies

Governance

Ministry of Employment and Labor (MOEL) & Korea Human Resource Development Service (HRD Korea) (2017). Ministry of Employment and Labor (MOEL) & Korea Human Resource Development Service (HRD Korea) (2020). ① The Minister of Employment and Labor will draw up the promotion plan for practice (hereinafter referred to as the promotion plan) every three years.

② The Minister of Employment and Labor may entrust part of the research work under paragraph (1) to a relevant research agency designated by Presidential Decree. Areas that the Minister of Employment and Labor recognizes that the operation of the qualification system at the national or industrial level is appropriate through practice. ② The methodology and process of the pilot project according to paragraph (1) will be determined by the Ordinance of the Ministry of Employment and Labor.

The other points that the Minister of Employment and Labor deems necessary for effective management and promotion of the apprenticeship. The other vocational training matters that the Minister of Employment and Labor deems necessary. ③ The Minister of Employment and Labor can issue a correction when employers violate subsection

① The Minister of Employment and Labor and the employer of the training company must evaluate apprentices in terms of whether they have achieved their goals, according to the standards of vocational training in Article 11 on Apprenticeship. ② The Minister of Employment and Labor issues a qualification to the person who has been deemed eligible. ③ The Minister of Employment and Labor shall operate a digital system which is necessary to facilitate the administrative work, such as confirmation of apprenticeship and issuance of qualification.

① The Minister of Employment and Labor shall revoke the apprenticeship qualification if the person with this qualification falls under any of the following subparagraphs. ② Necessary matters related to the amount of the fee according to paragraph (1) are defined by the Decree of the Ministry of Employment and Labor. The Minister of Employment and Labor will hold an action hearing on the following measures.

Gambar

Table 1-1 Overview of apprenticeship types
Figure 1-1 Types of apprenticeship high school
Table 1-3 Types of apprenticeship for new workers based on the different  approaches of recognizing completion results
Figure 1-3 Change in the amount of budget for apprenticeship
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