What is On-the-Job Training (OJT)

In Japan, the most prominent players in business education are corporations because they provide on-the-job training to their employees, particularly new graduates. However, with the low growth of the Japanese economy after the collapse of the bubble economy around 1990 and the recent drastic changes in the international environment, it is necessary to reexamine business education. To cope with the drastically changing environment, many Japanese companies are evolving their education model to emphasize off-the-job training in addition to on-the-job training. The main target of such training now includes senior executives, in addition to junior- to mid-level executives. Business schools play a role in educating senior executives. Although major Japanese companies utilize top business schools overseas, Japanese business schools are still the major education providers. This chapter discusses the recent changes, prospects, and issues concerning Japanese business schools.