Bring out the need for on-the-job-training for a person.
On-the-job-training is essential because humans need a good deal of training and skill to do things efficiently. It acts as a source of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than its cost.
Through on-the-job-training, a person can be trained in the firm itself under the supervision of a skilled worker or sent for off-campus training. This training enhances the worker's skills, which leads to higher productivity.
Consequently, the enhanced productivity allows the person to generate more income and contribute more to economic growth. Firms also benefit from this enhanced productivity, which is why they incur expenses for such training and insist workers stay for a specific period to recover these benefits.
Explanation
The answer highlights the need for on-the-job training by linking it to human capital formation, enhanced labour productivity, and the ability to generate more income. It uses the textbook context to explain how training equips workers with necessary skills and benefits both the worker and the firm.