CE 073 423 Culanculan-Tupas, Liberty · AUTHOR Culanculan-Tupas, Liberty TITLE Partnership with Business and Industry: Technical. ... mandate of TESDA in Section 21 RA 7796 provides

DOCUMENT RESUME

ED 404 483 CE 073 423

AUTHOR Culanculan-Tupas, LibertyTITLE Partnership with Business and Industry: Technical

Vocational Education in the Philippines.PUB DATE Dec 96NOTE 24p.; Paper presented at the American Vocational

Association Convention/International VocationalEducation and Training Association Conference(Cincinnati, OH, December 5-8, 1996).

PUB TYPE Speeches/Conference Papers (150) ReportsDescriptive (141)

EDRS PRICE MFO1 /PCO1 Plus Postage.DESCRIPTORS Apprenticeships; *Cooperative Programs; Curriculum

Development; Educational Needs; *Education WorkRelationship; Foreign Countries; *InstitutionalCooperation; On the Job Training; *Partnerships inEducation; Policy Formation; Postsecondary Education;Public Policy; *School Business Relationship;Secondary Education; *Vocational Education

IDENTIFIERS *Philippines

ABSTRACTLinking employers with educational institutions in

order to improve education and educate students who can do jobs isimportant in the Philippines. Program linkages include the following:(1) industry involvement in policy formation through employer groupson education boards; (2) regional and provincial education boardshaving private industry representatives; (3) promotion of the dualtraining system as the preferred mode of technology-based educationand training; (4) an apprenticeship program that expects industryemployers to prioritize training needs; (5) Supervised IndustrialTraining that promotes closely monitored on-the-job training; (6)

close partnerships among nine Industry Training Boards and industryassociations that foster the capability of the private sector totrain employees; and (7) resource sharing to conduct the National andInternational Skills Olympics. Although these efforts arepraiseworthy, cooperative efforts between public traininginstitutions and employers have been difficult to establish. Lack ofincentives and lack of capability on both sides of the relationshipmake cooperation difficult. Problems include weak information linkswith employers, the school systems' lack of resources for developingcurriculum, and the sometimes poor quality of training. Closecooperation between employers and training institutions is criticallyimportant to developing the information needed for training of allkinds. (KC)

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Reproductions supplied by EDRS are the best that can be madefrom the original document.

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OO

PARTNERSHIP WITH CUSENESS AND7t. !NIPU STEM49 TECHNICAL VOCATIONAL EDUCATION IN

THE 'PHILIPPINES

4

1i L BEM CLANCULQN-ITUEPA3Executive Director

Office of Formal Technical Vocational Education & TrainingTechnical Education and Skills Development Authority

IVETA CONFERENCE & AVA ANNUAL CONVENTIONCincinnati, Ohio

December 5-8, 1996

U.S. DEPARTMENT OF EDUCATIONOff "of Educational Research and Improvement

UCATIONAL RESOURCES INFORMATIONCENTER (ERIC)

0 This document has been reproduced asreceived from the person or organizationoriginating it

0 Minor changes have been made to improvereproduction quality

Points of view or opinions stated m thisdocu-went do not necessarily represent officialOE RI position or policy

PERMISSION TO REPRODUCE ANDDISSEMINATE THIS MATERIAL

HAS BEEN GRANTED BY

CTO THE EDUCATIONAL RESOURCES

INFORMATION CENTER (ERIC)

PARTNERSHIP WITH BUSINESS AND INDUSTRY:TECHNICAL AND VOCATIONAL EDUCATION IN

THE PHILIPPINES

by

DR. LIBERTY CULANCULAN-TUPASExecutive Director

Office of Formal Technical Vocational Education & TrainingTechnical Education and Skills Development Authority

GREETINGS

It is a distinct honor and privilege for me to be invitedto participate in the "IVETA Conference and AVA AnnualConvention". May I take this opportunity to commend theorganizers for coming up with this Conference. Weprimarily support this kind of activity as this gives us achance to touch base with our partners in the sector,especially with regard to elucidating our current directionsand thrusts to achieve unity and cooperation in technicaleducation and vocational training program implementation.

For my part, I am happy to be given the opportunityto speak on the topic of Linkages with Business andIndustry for Vocational Education and Training in thePhilippines. Allow me the liberty of adopting .the title"Improving Links with Employers" for my discussion thisafternoon.

Partnership with Business and Industry: Technical Vocational Education in the Philippinesby DR. LIBERTY CULANCULAN-TUPAS, Executive Director, OFTVET -TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

I intend to inventory programs and describe each effort tolink up with industry, otherwise known as end-users oremployers.

Let me begin with a definition of topic: LINKAGE.Webster defines linkage as: the manner or style of beingfitted together or united. So, I take it to mean that youwant to examine ways and means by which the educatormay be fitted together with their customers, the employers.The Encyclopedia of Science and Technology adds thatlinkages are used to transmit power and information. Ibelieve that we also want this transmission of power andinformation in our developing relationships with our end-users.

Now, let me list each linkage program and describeeach:

1.) In policy formulation, industry is involved becauseemployers groups are represented on the TESDA Board.This linkage is formed in order to evolve policies that areuser-led or market-oriented.

2.) In operations, we have caused the organization of theTESD Committees at the regional and provincial levels.These committees mirror the composition of the TESDAGoverning Board in which the private sector has the greaternumber of seats, the better for a more balanced policyformulation diffused to all stakeholders.

Partnership with Business and Industry: Technical Vocational Education in the Philippinesby DR LIBERTY CULANCULAN-TUPAS, Executive Director, OFTVET-TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

3.) At the program level, we are now promoting the DualTraining System as the preferred mode of technology-basededucation and training. This system requires therelationship between training providers and end-users to beso close as to become a full partnership.

4.) The Apprenticeship Program expects industry oremployers to prioritize those occupations that are criticaland to inform the training providers so that they canrespond by adding new technologies and constricting otherswhich may not be needed at a given time.

5.) The Supervised Industrial Training or On-the-JobTraining fosters close collaboration especially in the in-plant portion of the training course.

6.) TESDA also maintains close partnerships with thenine Industry Training Boards and various recognizedindustry associations in order to build-up the capability ofthe private sector to manage and undertake training of theiremployees on their own.

7.) In the conduct of the National and International SkillsOlympics, the providers and end-users share resources inthis undertaking.

Do these efforts suffice? Can we say that industry isnow a full partner of the school and/or centers?


Cooperation between public training institutions andemployers has been difficult to establish in the publictraining system. Two fundamental problems --- lack ofincentives, and lack of capability --- lie at the heart of theissue. These operate on both sides of the relationship.Training institutions are accountable to a governmentministry, and then only for routine administration;effectiveness in placing trainees in jobs is rarely a criterionfor obtaining either a larger budget or promotion.

Experience in World Bank projects suggests that linksare more effective when several mechanisms are usedtogether. For example, placement services linked toadvisory committees and instructor visits to enterpriseshave been more effective than any one of those approacheson its own. Creative school managers, given sufficientautonomy, can be adept at setting up a network ofsupportive relationships with employers.

IMPROVING LABOR MARKET SIGNALS ANDINCENTIVES

To improve the efficiency of skills training, plannersmust not overlook the importance of the economicenvironment and the signals it provides that guideindividual and enterprise investments in skillsdevelopment. The fact that vocational graduates cannot getjobs may be due to inappropriate curricula, lack of practicaltraining, or other matters within the control of a trainingsystem, but it may also be due to distortionary economic


policies about which the system can do little. Without thediscipline of a competitive economic environment, there islittle reason a priority to expect schools and training centersto be efficient on their own initiative. Thus, a competitiveeconomic environment is necessary for the efficientallocation of resources for skills development.

In competitive market economies, movements inwages and employment signal changes in the demand forand supply of, particular skills and trades. The carefulmonitoring of these signals by manpower planners is oneway to identify trends in the demand and supply of skills.

Labor market signaling requires planners to focus oneducation and training qualifications rather than onoccupational classifications. Perhaps the weak linkbetween skills specialization and occupational placementprovides the most important reason to focus on educationand training qualifications in manpower planning. A studyof the Philippine labor market found that, among thoseemployed, only 73 percent of the recent graduates inapplied science and only 47 percent of the liberal artsgraduates were actually working in their field ofspecialization.

This is important because the resource allocativemandate of TESDA in Section 21 RA 7796 provides that"all government and non-government agencies receiving,financial and technical assistance from the governmentshall be required to formulate their respective annual


-

agency technical education and skills development plan.The budget to support such plans shall be subject to reviewand endorsement by the Authority to the Department ofBudget and Management." The review and endorsement ofagencies' budget shall begin with the 1998 budgetingexercise. In allocating training resources, the importantpoint to be considered is how particular training programaffects productivity, not how the program affectsoccupational placement. Instead of emphasizingoccupations in the allocation decision, as manpowerrequirements forecasting does, labor market signalingemphasizes economic outcomes, measures in terms ofwages, employment, and the costs of specific education andtraining programs.

Training is also likely to be more efficient ifmanpower and economic planning activities are integratedso that the economy and training incentives are more fullyaligned.

COMMON CONSTRAINTS --- WEAKINFORMATION LINKS WITH EMPLOYERS

Improving the match between the size andoccupational distribution of employment demand on theone hand and the volume and content of training on theother depends crucially on information links. When theselinks are strong and dynamic, pre-employment training canbe cost-effective. When they are weak or absent,institutional inertia, compounded by resource weakness,


can lead to routine programs that are increasingly divorcedfrom employment reality.

INSTITUTIONAL LINKS.

Furthermore, systems and institutions with fewresources, little capacity to develop curricula, and rigidcontrols on curricula are unable to respond to informationfrom employers, even when it is available, or to establishjob placement services or dual training arrangements.Regulations often do not allow public training institutionsto retrain revenue from training contracts. Employers findlittle reason to invest time or resources in collaboratingwith training institutions that are unable to respond to theirneeds. This indifference increases when the quality oftraining is poor. And many firms, especially small ones,have neither the resources nor the appreciation of the valueof training to participate effectively.

IMPROVING LINKS WITH INDUSTRY

Close cooperation between employers and traininginstitutions is critically important to developing theinformation needed for training of all kinds. Cooperationcan take many forms, but all on the strong commitmentfrom the government to a real and substantial role forprivate employers. This commitment is embodied in thestatues governing the training system, but it is implementedthrough allocation of resources to the process of

Partnership with Business and Industry: Technical Vocational Education in the Philippinesby DR. LIBERTY CULANCULAN-TUPAS, Executive Director, OFTVET -TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

9

cooperation. At a minimum this means building thecapability of individual training institutions to undertakecooperative efforts.

Vocational guidance and placement services inschools, colleges, and training centers are a first element inbuilding links with employers. These need not be elaborateto be effective. Aptitude testing as practiced in somedeveloping countries, for example, is much less importantthan training managers and staff regularly in methods forworking with employers to find out what jobs are available,and obtaining feedback on the performance of graduates.The head of a technical college in Mauritius, for example,has had considerable success in placing students in jobs byposting job opportunities he has learned about in visits tolocal employers on a bulletin board near the entrance to hisschool. Job fairs, which bring students and prospectiveemployees together, have been effective in many countries.In countries with underdeveloped employment services,there is every reason for schools and centers to take on thisresponsibility --- even though in some countries, such asThailand, bureaucratic regulations have made it difficult forschools to do so.

Involving employers in the design of curricula isespecially important in industries subject to rapidtechnological change. Advisory and curriculumcommittees have had mixed success but perform best whentraining institutions are able to make the adjustmentsemployers want. Such committees may also work best

Partnership with Business and Industry: Technical Vocational Education in the Philippinesby DR. LIBERTY .CULANCULAN-TUPAS, Executive Director, OFTVET-TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

where dual training systems exist because employers andtraining institutions must jointly design and implementtraining programs. Enterprise associations can strengthenlinks between small firms and training institutions.Research in the United States has found that at the juniorcollege level, instructors develop the best links withemployers on matters of curriculum and job placement.Skilled workers who teach part -time can provide anotherlink.

MEETING THE NEEDS OF DIFFERENT SKILLSMARKETS. Responsiveness improves when traininginstitutions develop specialized expertise for, andinstitutional linkages with different skills markets.Institutions have a natural advantage in serving local

industries. Specializing in cluster of related occupations,however, or in sects of the economy, is also possible,depending on the size of markets and the capacity ofindividual training institutions. Both approaches have beenfollowed in Korea. Enterprise have been encouraged tomanage vocational schools to meet local needs. As theeconomy has changed, clusters of technical schools in highdemand have been identified for curriculum reform andspecialization in such areas as precision machining,chemical industries, and information sciences.

Specialization is a viable option when modern sectoremployment is large enough to create sufficient specialized

demand. In smaller economies training institutions must

Partnership with Business and Industry: Technical Vocational Education in the Philippines

by DR LIBERTY CULANCULAN-TUPAS, Executive Director, OFTVET-TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

serve several markets to generate the business needed toachieve reasonable scale economies in their operations.

Specialization is strategic skills is an important rolefor selected post-secondary technical institutions. Bydefinition, both the technology and training expertise forthese skills are found primarily in industry. Dual trainingsystems, which rely on schools and colleges to providebasic technical education courses and on establishments toprovide specific occupational training, are an efficient waynot only to overcome shortages of instructors, but also toshare operating costs and expertise in curriculumdevelopment.

Another option for vocational schools is to trainskilled workers in core occupations --- such as secretary,bookkeeper, motor mechanic, and maintenance electrician --- that are in demand throughout the economy. To be cost-effective, however, the training system must be able to hirequalified instructors, to monitor training outcomes, andadjust enrollments and courses as demand changes.

LINKING EMPLOYMENT TRAINING TO JOBS

When unemployment is high, training programs foryoung people who have left school are generally moreeffective if they are part of job creation policies andprograms. Incentives strategies include promoting labor=intensive industries, reducing the cost of labor relative tocapital, and institution labor market policy reforms to


12

increase employer flexibility and lower the cost toemployers of job creation. Training can play an importantrole in these strategies, but only if it is flexible, efficient,and linked to job opportunities.

These policies move the task of identifying clients andemployment opportunities --- and consequent trainingneeds --- to local levels where information is most readilyavailable. National policy is implemented through thestructure of grant allocations and through accountabilitymeasures. In the United Stated, for example, block grantsare allocated for three general purposes: training for adultand youth unemployed, retraining for adult workersdislocated by economic change, and training for thesocially and economically disadvantaged.

CONCLUDING STATEMENT

I have enumerated areas where linkaging will getbetter support from various stakeholders, but especiallyfrom the employers. We believe that success will dependlargely on your commitment, resourcefulness and yourability to move various key players toward the sameobjective to produce a highly skilled technical workforce.We hope to see more collaborative arrangements andpartnerships after this Conference, to prove that somethinghappened here for the good of our constituents,


13

In closing, allow me to convey my congratulations tothe organizers, and most especially to the participants foran eventful, fruitful and meaningful Conference.

Partnership with Business and Industry: Technical Vocational Education in the Philippinesby DR. LIBERTY CULANCULAN-TUPAS, Executive Director, OFTVET-TESDAIVETA Conference and AVA Annual Convention, Cincinnati, Ohio, December 5-8, 1996

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