Table of Contents. Table of Contents 1. List of Charts 3. List of Abbreviations and Acronyms 5. Executive Summary 7

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1 Table of Contents Table of Contents 1 List of Charts 3 List of Abbreviations and Acronyms 5 Executive Summary Background Current Assessments Impact of National Agenda/National Employment Strategy to VTC Current Organizational and Governance Structure The Modified Delphi Survey Findings Introductions Analysis Program Education Objectives/Knowledge, Skills and Aptitude Training, Business and Governance Models Change Management The New Business Model Customers and Clients Value Proposition Customer Relationship Channels Revenue Streams Key Resources Key Activities Key Partnerships Cost Structures Financial Model The New Training Model Definitions Development of the New Training Model Studies from Previous Projects Other Countries Best Practices Methodology in Developing Models Concept of the New Training Model Modular Competency Based Education and Training (MCBET) MCBET Characteristics Framework and curriculum Development Approach Framework and Methodology Quality Assurance in MCBET Models Centre of Excellence 51 1

2 5.13 Vocational Training Information System VTC Governance Model The Core Business of VTC Growth Phases of VTC Governance Model VTC Legal Mandates Framework of the New Governance Model Multi-sectorial Alliance and Management of VTC Autonomy Institute Business Planning Managing Board VTC Revenues/Financial Sources Strategic Planning Allocation of Resources/Funds Quality Assurance Framework Methodology Piloting of the Models in Three VTIs Summary. 71 Appendix

3 List of Charts Figure 1.1: Figure 1.2, Figure 2.1: Figure 3.1: Figure 3.2: Figure 3.3: Figure 3.4: Figure 4.1: Figure 5.1: Figure 5.2: Figure 5.3: Figure 5.4: Figure 5.5: Figure 5.6: Figure5.7: Figure5.8: Figure 5.9: VTC Organizational Chart Location of VTC Vocational Training Institutions Modified Final Delphi Result (refer to Appendix I for list of questions). Relationship of Value Proposition. Mapping of Business Model. Framework for outcome of VTIs Relationship between Key Activities. Government Contribution and Revenue Generated. Characteristic of the New Training Model from the TOR Structure of the Jordanian TVET system Jordanian Education System The process of The Modularisation Competency Based Education and The Concept of Work Process Knowledge, Didactic Mapping and Modular Competency-based Education and Training Kolb s Experiential Learning MCBET based on module delivery method Modular curriculum development framework for VTIs Work process knowledge and Learning models Figure 5.10: Module Customizations based on Occupational Family Figure 5.11: Competency-based Education and Training Standard and Assessment Figure 5.12: Propose Framework for Centre of Excellence (CoE) Figure 6.1, VTC Growth Model using Greiner s Model (source: Greinier 1972 ) Figure 6.2 Figure 6.3 The New VTC The New VTC Multi-sectorial Governance Framework 3

4 Figure 6.4, Figure 6.5, Figure 6.6, Figure 6.7, Figure 6.8, Figure 6.9, Line of Authority Governance Process Approach Customers Perception of Quality A Framework for Quality HR Strategies Framework HR Audit Process 4

5 List of Abbreviations and Acronym AP CBET CBT CoE CSB DG DGA EDSDP E-TVET EU FDI HR IBP IBPU JICA KPI KSA MCBET MOE MOHESR NA NDTS NES PBET Alliance Program Competency Based Education and Training Competency Based Training Centre of Excellence Civil Service Bureau Director General Director General Assistant Employer Driven Skills Development Project Employment Technical and Vocational Education and Training European Union Foreign Direct Investment Human Resources Institute s Business Plan Institutional Business Planning Unit Japan International Collaboration Association Key Performance Indicators Knowledge, Skills and Aptitude. Modularized Competency Based Education and Training Ministry of Education Ministry of Higher Education and Scientific Research National Agenda National Dual Training System National Employment Strategy Production Based Education and Training. 5

6 PPP QA RPL SEM TAFE TMIS ToT TVET USAID VTC TOR VSS VTI VTIS Public Private Partnership Quality Assurance Recognition of Prior Learning. School Enterprise Model Technical and Further Education Training Management Information System Training of Trainers. Technical and Vocational Education and Training United States Agency for International Development Vocational Training Corporation Terms of Reference Vocational School System Vocational Training Institute Vocational Training Information System 6

7 Executive Summary This report is presented as part of the second component of the EDSDP Restructuring VTC involving the design and implementation of new business and training models within the established governance structure and regulatory framework of the VTC. The models proposed in this report is recommended based on document analysis, countries profiles,, ground visits and interviews, and 3 rounds of Modified Delphi survey participated by Jordan s TVET experts and practitioners. It also took into consideration Jordan s National aspirations as detailed by its National Agenda. The proposed models for VTC should be seen as the starting point of a progressive and evolutionary organization that will continually improve itself based on its capabilities and labour requirement dynamics. The models would be implemented based on the organizational audit which will be carried out during the Second Phase of the project implementation. Business Model Under the new business model derived from the 9 Blocks Model, VTC customers and clients were identified to be the labour market, the socio-economic development and the open market for products and services while the value proposition is the mandated function of the VTIs. The training model of VTI is the main product that is offered to its customer and clients and is developed to offer quality demand driven training. Associated VTI by-products of commercial quality products and services, consultancy and problem solving shall also be offered. Customer relationships management is implemented as an institution-wide business strategy with its industry standards facilities used as channels to deliver the VTIs value proposition to customer and clients. The revenue generated will be both in the form of monetary value and socio-economic development. Key resources of physical assets, intellectual properties and client s databases will be used for these purposes. Highly competent human resources at a comparable or higher level than private enterprise and with real industry experiences are crucial as is a competent management team for the business plan. It calls for VTI to establish an Institutional Business Planning Unit (IBPU) to plan, evaluate, monitor and maintain the total quality management system while maintaining ownership of its own human resources capacity building. As a business entity, VTI need to respond to market need and be nimble and flexible. It must make timely business decisions involving finance to procure assets. Successful VTI will create alliances optimizing its business model by reducing risks and acquiring resources. VTI will redefine PPP by offering value to each partner through strategic 7

8 alliances, developing new products and ensuring reliable supplies through excellent buyersupplier network/relationship. At the same time, cost structures are minimized to maintain a lean organization. Outsourcing of training facilities and external experts with careful selection of value creation program would enable VTI to minimize cost. Financial Model VTC mandate is to provide skill workers for labour market and at the same time provide training for socio-economic development. These financially incompatible goals for a business entity would need government financial contribution to VTIs for it to fulfill the socio-economic portion of its function enabling supply of trained manpower translating to gain in the economy through FDI and exports. Current budget allocation for VTI is insufficient to implement the new business model effectively. It would still need government continued financing for basic salary and training grants putting on a minimum operational level with an Outcome Based Budgeting System implemented based on agreed key performance indicators. Implementation of the Financial Model, divided into strengthening, excellence and sustaining phases. Effective implementation of the business model would require amendment to current laws, by-laws and procedures. Unavailability of by-laws currently hinders VTC from effectively exercising its full responsibilities. Work around mechanism such as trust accounts would have to be implemented prior to changes in by-laws. Training Model The training model is characterized by responsiveness, relevance, cost-effective, efficient, accountability and sustainability. It will use a competency based approach and address accreditation and certification including standards and processes ensuring up to date skills of trainers. It will link VTC to Center of Accreditation and Quality Assurance, the TVET Council and include a clearly defined role for industry including achieving upstream involvement of employers in the planning, standards, content and competencies testing. The Delphi survey revealed that skills to be acquired by VTC graduates are technical skills, knowledge, attitude, soft skills, personal skills, entrepreneurship, methodological and general/basic education and skills for implementing theory/current technology in real world of work. A document analysis of previous TVET projects implemented in Jordan (JICA, USAID, EU and Canada) together with studies of other countries best practices were also made to determine the best training model for implementation in Jordan. The concept of the new training model will be the Modular Competency Based Education and Training (MCBET). It combines market production with systematic vocational learning, overcoming constraints of lack of competency among students and designed to prepare and expose students to skills and knowledge in actual workplace. It motivates students via 8

9 visibility of future returns of learning. Via synthesis of education and production, VTI can expect to exploit new financing options to meet training costs. MCBET would provide students with a clear map and navigation tools to quickly move towards their goals. It logically develops and generates competencies required in workplace with study pace becoming manageable and flexible through use of modules. Inclusion of an open entry and exit would address the issue of enrolment, further training and social responsibility. MCBET is characterized by actually learning by doing and coaching. It includes the 6 components of graduate profile per the Delphi survey. It is highly modularized and inculcates student s soft skills while training. Student will experience actual work environment with production as a source of training. Curriculum development is done together by VTC, industry representatives and selected VTI trainers. Quality Assurance (QA) is accomplished through registration, certification and accreditation. It is viewed in term of inputs, processes and outputs. A Trainers Development and Certification Program are to be designed with QA for VTI training systems determined at 3 levels: training standard, competency standards and competency assessment. VTI with sufficient capacity building are recommended to operate under Production Based Education and Training (PBET). Existing VTC s Center of Excellence s (CoE) framework is applicable to other VTI with an alliance program (AP) established between them. Monitoring of the training system would be done under the Training Management Information System (TMIS) to be expanded to a Vocational Training Information System (VTIS) for management planning and decision making. Governance Model The governance model is a framework for ensuring VTC management efficiency and accountability to support changes in implementing the training and business models. It is composed of a strategic plan with identified KPI and milestones, a process management system with monitoring components and organizational structures detailing relationship, responsibilities and accountabilities of VTI and VTC units and HQ. It also includes a Human Resource Development and Management system together with a Quality Assurance Framework and partners with stakeholders and other allies. The governance model must be mandated by enabling laws to be effective and efficient. Current laws lacks references to decentralization, span of control and delegation of authority concentrating decision making of even simple and routine procedures at the top. It is strongly suggested by document analysis and the Delphi survey that these existing laws must be studied and be amended as a pre-requisite for all other reform action. Existing laws however has to be read in light of the VTC law which stipulate that it is financially and administratively independent though approval of this by-laws are still held 9

10 up. Current laws prevalent theme is that decision making is centralized under the office of the Minister of the appropriate ministries and departments attached. Three key by-laws will emerge relating to human resources, procurement and finance due to the logical progression of Restructuring VTC based on PPP concept and through the complete managerial and financial autonomy of VTC. This is reinforced by the existing Article No 6 of law-in-force not allowing private sector majority in VTC board and the nonprovision of decentralization and delegation of authority. VTC will build alliance with stakeholders critical to the new VTC as training will be closely tied with industry. To operationalize the concept, the entire VTC operation will be working with the industry and community at various working level form National Policy formulation down to institutional operations at VTIs. The autonomy of the new VTC will be developed for timely and effective decision making and making for a culture of performance by VTI s self-analyses to identify its own strength and weaknesses consequently setting its own development plan based on perceived needs in their service area. Decentralizing decision makes the VTI/units responsible, accountable and committed. The new VTC will be directed and managed by a Board of Directors, Director General and executive staff. The majority of VTC Board of Directors is to be nominated and appointed by/from the private sector. The Board are to be more involved in VTC undertaking with responsibilities properly defined for amending mandates of the corporation prior to Cabinet deliberations, overall policies and organization structure including staffing and operational procedures, appointing senior staff based on performance criteria, deciding salary scales, setting annual plan and budget policy and approving annual consolidated budget proposal. The chairman of the board is recommended to be from the private sector. Strategic Planning and Implementation. Moving forward toward implementation of the models, a VTC strategic planning will be done. It will involve an organizational audit, a gap analysis and a staffing plan together with developing a training plan. Allocation of resources/funds will be based on realistic plans of various VTC units in accordance with the Strategic Plan and Budgeting Direction of the Board. The strategic planning will include implementation of quality assurance system spelled out in a QA manual. Effectiveness of the quality assurance system will need evaluation to enable a continuous improvement environment. Taking into consideration the strategic planning and implementation procedures and allowing for any resource constraints, the models are targeted to be piloted in three selected VTIs. 10

11 1.0 BACKGROUND The New VTC [Transformation Models of Business, Training and Governance] Under the present project TOR, the EDSDP second component on Restructuring of the VTC, involves designing and implementing new business and training models within the established governance structure and regulatory framework of the VTC to create an organization characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability. The Delphi Survey 1 Results conducted by the Consultant with TVET and industry experts/practitioners point out overwhelmingly that the current laws need to be amended to effectively restructure and implement a new VTC. The Consultant is working closely with the Advisory Committee for Public Private Partnerships (PPP) that has oversight for Model Centres on the training model framework with a business model as mandated by its TOR. The detailed assessment of the VTC indicates that a fundamental reform and restructuring of the organization is required. This will result in the transformation of VTC into a new decentralized organization with a new business model and a new employer-driven training model. The World Bank is supporting the E-TVET reform through the Employer Driven Skills Development (EDSD) Project, which runs from 2008 to The EDSD Project has three main components: E-TVET System and Council Development with Employer Participation Restructuring of the Vocational Training Corporation Strengthening the Training and Employment Fund The services rendered by the Consultant under this TOR shall contribute to the second component, Restructuring of the VTC, which involves designing and implementing new business and training models [within the established governance structure and regulatory framework of the VTC] to create an organization characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability. As pointed out by the Delphi study, the VTC current by-laws need to be amended to implement reforms effectively. 1 The Delphi Survey Methodology was used to gain insights from views of TVET experts and practitioners in Jordan on the restructuring of VTC. It is designed not only to gather data but also to build on project ownership and consensus building 11

12 1.1 Current Assessment The VTC is striving to work in an environment that requires a totally different approach to be able to respond to the requirement of: dynamic change environment, engulfing the youth of 16 years old and older/from tenth grade and below, those outside the education system due to poor educational performance, school leavers who are either unemployed or under-employed; and/or graduates of or drop-outs from schools or institutes of higher learning; the youth segment of the population, which is the main target of VTC, comprising roughly 21% of the overall population; young population with 38% of the population at the age of 15 years or younger [roughly increasing 2.6% per annum]; annual entrants into the labour market which exceeds 60,000 individuals. high unemployment rate roughly estimated between 13% and 20% (depending on the source of information) private sector perception of skill mismatch or inadequate skill of graduates The Royal Decree issued on the 9 th of February 2005 has created a national committee to develop a comprehensive National Agenda: Need for employable skills [at the forefront of development] Theme: Employment Support and Vocational Training Restructuring of the institutional framework for the support of employment and vocational training functions through the establishment of: 1) the Higher Council for Human Resource Development, 2) the Employment, Technical and Vocational Education and Training (E-TVET) Council 3) the Outplacement Department, and 4) the Licensing and Accreditation Council for the Vocational Training sector. Minister of Labour/VTC formed a coordinating national committee, which has developed a logical time frame and the necessary actions/indicators for implementing the E-TEVT strategy NA Targets: starting in 2006, creation of 340,000 net new jobs by 2012 created; by ,000 new jobs, by % of employers should become satisfied or very satisfied with the skills of certified trainees, 15% of whom are females. 1.2 Impact of National Agenda/National Employment Strategy to VTC Based on the targets set by the National Agenda (NA) and the recent National Employment Strategy (NES), there is a critical need to radically reform the Vocational Training Corporation (VTC) so that it can contribute more effectively to skills upgrading and better meet the needs of the workforce. Prior to its recent reform efforts to respond to labour market demands, the VTC had been characterized as a highly bureaucratic governmental institution with a supply-driven training orientation and curricula and programs that are mostly outdated. VTC needs the following to improve: 12

13 VTC to be autonomous and decentralized with a distinct private sector orientation in all of its management and training functions. Changes of its legal mandate, organizational structure and training practices. Private sector role to be deepen and significant in managing the affairs of VTC (current role is only symbolic). Sector management should be influenced by industry/private sector [private sector should be the majority in the council] E-TVET Council should be enabled by law; the E-TVET Council Secretariat should be more capable of feeding the Council with serious research for input into policy formulation. The Council should identify LMI for TVET providers to be more current and market driven. 1.3 Current Organizational and Governance Structure The VTC organization consists of a Board of Directors, the Director General (DG), 3 Director General Assistants (DGAs), 3 Regional Directors, 39 Divisions, 4 Support Teams/Committees, and 3 Support Staff Offices (Figure 1.1: VTC Organization Chart).. 13

14 Figure 1.1: Current VTC Organization Chart. 14

15 VTC owns and operates a network of 43 Vocational Training Institutes 2 distributed as 11 CoEs [specialized institutes] and 32 vocational training institutes [VTIs], all of which are distributed over 3 regional directorates in the country (Figure 1.2, Locations of VTC Training Institutions), with the majority concentrated in the central region. Figure 1.2, Location of VTC Vocational Training Institutions The system of management and operation of VTC is very highly centralized. All the important decisions are taken at the top with a heavy daily operational management load on the Director General impairing the office to provide other critical management functions. Bureaucratic procedures for financial transactions are too stringent that all payments for vouchers regardless of amount are pre audited by the external government auditors, on top of internal audit procedures. Audit procedures and objectives are not designed for development auditing, but simply for financial control, which in many ways results in more costly services or goods. The penchant for instituting controls has become a management culture that restricts more effective management. Available data shows that there are 1428 permanent and temporary staff members with a staff/trainee ratio of 1 staff member to every 7.3 trainees. All staff appointments are regulated and approved by the Civil Service Bureau (CSB). Staff distribution 3 to administrative units and Centres/institutes is not carried on the basis of functions, task, 2 By Executive issuance, the VTC Centres are all called Institutes 3 Theodory 15

16 duties and activities. Salaries and wages are determined on government scales which are very low at all levels of the organization and pose a serious obstacle to attracting qualified professionals to participate in VTC S technical and managerial posts. Although there is a current pending across the board salary increase in the government, the current position classification of the VTC personnel will be equated to established position in the government position classification not commensurate to VTC requirements. There may be a need to redefine the position classification, subject to a personnel audit, and subsequently define appropriate jobs nomenclature to VTC redefined functions. VTC staff average age is 42 years with about 42 per cent of the staff having secondary education or less. The current salary levels of VTC personnel had been effectively downgraded and are being made up by provision of overtime pay. Career development and succession plans/programs are almost non-existent while personnel performance assessment mechanisms are not objective and not based on agreed performance indicators. These human resources management mechanisms are fundamental to identify employee capabilities and/or potentials and are critical to their career mobility in the organization. At the same time, under normal conditions, employees cannot be terminated for poor performance due to the government s tenure policies which in general affects accountability of personnel. More thorough analyses of the organizational and human resource will be performed to determine extent of capacity building as a requirement for restructuring of VTC. The establishment of an Employee Assessment Program will help determine who at VTC has the potential for development before a full blown institutional capacity building effort is initiated. 2.0 The Modified Delphi Survey Findings 2.1 Introduction The Modified Delphi study involved expertise that gave inputs (quantitative and qualitative data) needed as feedbacks for the development of the sustainable VTC model- training, business and governance. It involved 30 selected experts from among the key stakeholders of the Vocational Training systems in Jordan. The items imposed to the respondents are based on the requirements and criteria of a sustainable TVET institution. At the same time, these items also served as themes for discussion as part of a semi structured interview of the respondents. Apart from giving the related rating on the degree of agreement towards the statement, the provocation of questions related to the items/statement, by the consultant, leads to further rich qualitative data/information and justification on the ratings of each items. 2.2 Analysis The result of the final round of modified Delphi on the quantitative data is shown in Figure 2.1 below. 16

17 Modified Final Delphi Result S10 S9 S8 S7 S6 S5 S4 S3 S2 S1 Series Strongly disagree Strongly Agree Figure 2.1: Modified Final Delphi Result (refer to Appendix I for list of questions). The results of the Delphi questionnaires and interviews have been divided into 3 sections: 1. Program Educational Objectives/Knowledge, Skills and Aptitude. 2. Training, Business and Governance Models 3. Change Management of the New VTC Program Educational Objective/Knowledge, Skills and Aptitude. From the Delphi results, it can be concluded that the VTC transformation plan will be able to produce workforce in the industries, who is: 1. Competent vocational workforce that support the related industries. 2. Professional and entrepreneurial in sustaining their marketability in the industry. 3. Possessing lifelong learning attributes to pursue higher level of training and education. The attributes of VTC graduates would be: Skills consisting knowledge, skills and attitudes. Soft skills such as communication skills. Personal fit and presentable. Entrepreneurship business minded. Methodological in learning and training. Generic education in science, mathematics etc.) 17

18 2.2.2 Training, Business and Governance Models In general, the respondents strongly agree that training processes in the New VTC Model should be able to transform the trainees onto the expected level of industrial competencies. In addition, respondents commented that VTC need to identify specialize requirement of the industries and ensure flexibility of training to generate the expected level of trained trainees. Both these aspects would assist and guarantee employability to the trainees. The proposed model of Competency Based Education and Training (CBET) also find strong support from respondents with the subset of industrial respondents strongly agreeing to this concept. The CBET will be useful in real industry as this initiative would allow industries to upgrade its workers on a discrete time frame and achieve actual collaboration between industries and VTC. It will also focus training efforts towards achieving required demands of labour market. Training using CBET will also provide industries with specialization skills during and after training is completed. On the other hand, respondents are very much concern that the CBET be given the necessary support in terms of financial and access to proper equipment and assets in order to be successful. In governance, respondents generally agree that the decentralised new VTC Training Institution will be responsible for developing its own capacity building programmes. However, certain reservation in the form of human resources development where concerns were raised on judgment issues such as bias and other form of discriminatory practices. On the other hand, sufficient check and balances would be in place to implement the decentralization process. Basically it is agreed that each decentralized unit would know its human resources capabilities best and develop them accordingly. In addition, respondent also expressed their opinion that VTI would still need to be finance by the government, at least in the initial stages prior to VTI generating sufficient income to support all its activities and be financially independent. The respondent also agrees that the New Training, Business and Governance Models are capable of sustaining Change at New VTC. The new models at the same time need to be able to undergo its own changes to adapt to changes in industries and marketplace. Basic requirements are that training is based on competencies and labour market, governance on realisation of procurement and human resource potential and business on sustainability Change Management On communications, the New VTC communication plan is seen as essential by all respondents to provide success for the New VTC. The communication underscores all the New VTC success stories and provides the necessary high points to its stakeholders. Respondents feel that there should be a two way communication between the stakeholders and VTC to ensure proper understanding between the two parties. 18

19 The respondents feel that the present by-laws (Finance, Procurement and Human Resource) are regarded as deficient to support the New VTC. These by-laws are generally described as vertical, obtuse and obstructive. There is a need for a revamp or the passing of additional by laws to ensure financial independence and clear authorization channels among others for the New VTC in order to achieve its full transformation. The new set of by-law formulated (though yet to be approved) is a start in the right direction. There is also strong agreement that the VTC need to be transformed in tandem with Jordan s national priorities. The government initiative and focus on development, depending on the regions and directorates' needs, would be a financial lever for development at the regions' levels and consequently at the national level. Combating poverty and unemployment are national priorities and need to be overcome to achieve developed country status. There are divergent views by the respondents on whether the leadership (Board of Directors) of VTC is capable of engaging and enabling VTC for change. A deeper study of respondent composition revealed that the subset that have direct interaction with the Board of Directors strongly disagree that the leadership of VTC is capable of promoting the change. However, non-interacting respondents sub-set in general strongly agree with the statement. Respondents also feel that the Board of Directors needs to be effective, knowledgeable in VTC matters, have direct communication with VTC staffs and actively participate in VTC activities. The consultant believes that this item need to be address through firstly a mind-set change via self-development training courses (specific for Board of Director level), failing which changes in personnel may be required for VTC to move ahead. All staff of VTC is judged to be ready to move through the change by the respondents. However there are some concerns where dissemination of the mission and vision of the change have not been fully percolated through the ranks of VTC staff. The change should also be transparent to discourage resistance. Notwithstanding this, respondent generally agree that VTC staff are able and ready for the change. 3.0 THE NEW BUSINESS MODEL The paradoxical nature of the challenges faced by Jordan s TVET providers calls for a well thought business model. Firstly, Jordan must be able generate sufficient new jobs at appropriate levels for the burgeoning number of new entrants to the labour market, projected to grow at 4% per annum; and secondly it must increase the skills of the labour force to support greater competitiveness of Jordanian enterprises as required by economic integration. Thus the propose business model would have to provide the solutions for both challenges. 19

20 The establishment of the VTC was pursuant to Temporary Law No. (35) for the year The VTC is currently operating in accordance with Law No (11) for the year 1985 (The Vocational Training Corporation Law) and its amendments Law No. (50) for The VTC regulates the Jordanian labour market through its mandate as in the Law number (27) for the year 1999 (Vocational Labour Regulatory Law). The primary objective of the Restructuring of the VTC as part of the Employer Driven Skill Development Project (EDSDP) is (as per RFP) to establish basic guiding principles of efficiency, effectiveness, impact, sustainability and accountability at the institutional level and at the centre level. This will be reflected by building on Lessons Learned from previous and on-going interventions introduced by donor-supported projects or Model Skill Centres of Excellence based on public private partnership. This consequently will lead to the development of an integrated business model for the VTC to be adopted for planning and performance based monitoring and evaluation. The expected outcomes are as follows: a. Establishment of the Mandate, Governance Structure, and Regulatory Framework for the new Skills Development Agency; b. Organizational Restructuring and Staff Development; and c. Reorientation of the Training Delivery Model to Reflect Employer Defined Competencies. The specific objectives of this Project are (as written in RFP): a. To restructure the VTC to be a responsive vocational training provider as outlined in the National Agenda (within the existing regulatory framework). b. To develop and implement a business model for a decentralized VTC characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability that includes internal quality control and quality assurance. c. To develop and implement a training model for an employer-driven training system characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability that includes internal quality assurance procedures. d. To introduce elements of quality assurance in the business and training models. The proposed business model was developing with both the mandates of the VTI and the objectives as specified in the TOR in consideration. 3.1 Customers and Clients In any business model, the identification and understanding of customers and clients are utmost important. A clear understanding of who the customers and the clients are and 20

21 what are their characteristics would be a determinant of a good business model for any business. As mandated by the law, VTC primary function is training of skill workers. Naturally the questions of to whom and for whom the VTC does its training should be well defined. Currently main TVET providers in Jordan are the VTC, the MOE and the MOHESR. The MOHESR has a very clear role and its inputs are well defined. Only those who have passed the national examination with certain grades shall enter the MOHESR institutions. Furthermore by law, the MOHESR institutions are the only TVET providers that can award technician level and above. The MOE on the other hand is the biggest TVET provider in Jordan. With more than 200 VSS it captures the majority of the future skill worker. The rest of the potential skill workers should by default enter the VTIs. Considering the above mentioned roles of each TVET providers, the VTC is the only receptacle of young students exiting the school system up to grade 10 (currently the VTC is accepting grade 7 and above into its various programs) or those that dropout of the school system after that level. This implicitly made the VTC functions a dual facet. By mandate, the VTC has to provide training for skill workers for the labour market and on the other hand being the only receptacle of young students exiting the school system the VTC is also providing a social service to the country. Furthering its role in social service and taking into account the life-long learning, as aspired by the government, the VTC thus is the only institution in the Jordon TVET providers that provide vocational training for socioeconomic development especially for its local community of the VTIs. The characteristics of trainee inputs to the VTC are thus: a. youth 15 years old and above. b. youth from 7th grade to 10th grade who have exited the education system due to poor educational performance c. school leavers who are either unemployed or under-employed d. graduates of or drop-outs from schools or institutes of higher learning. e. the general public who needs to improve their socio-economic status including the females and special groups/citizens. f. workers who need to remained employed or going for higher employment g. unemployed. Ensuring a training model for an employer-driven training system characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability that includes internal quality assurance procedures as required in the project calls for close linkages between technical and vocational education and training with the world of work. Among the issues that are needed to be addressed are: linking the process of technical and vocational education to real work and market situations, and revenue generating mechanisms for the VTI. 21

22 The first aspect relates directly to the mission of technical and vocational education, including incorporation of entrepreneurial skills and know-how into vocational programmes. The second aspect is increasingly important as many governments find it difficult to supply their vocational institutions with the adequate funds required for their operation. The Workplace Based Modularized CBET is proposed as a new training model for VTC. This model combines market production and services with systematic vocational learning. The teaching personnel are compelled to undertake continuing educational courses to adapt to new market conditions and to introduce new curricular conceptions adapted to new technological processes. The introduction of production is assumes to bring the institution closer to the realities of life, particularly the world of work. It is also justified by the need to find new ways of teaching and learning so as to increase the trainees interest and motivation in their studies/training. An important aspect of the new training model is the factor of motivation for effective learning through combining learning with production and services, in that the training underlines the importance of visibility of future returns. Through the synthesis of education and production/services, technical and vocational education institutions are expected to exploit new financing options for meeting training costs. The proposed training model shall abrogate the perception of mismatch or inadequate skill of the VTC graduates compared with actual job requirements as mentioned in the PAD. Given the spectrum of inputs into the VTC and the proposed training model, the clients and customers of the VTC are thus: a. the labour market. b. the socio-economic development. c. open market for the products and services. The challenge in treating the labour market as a client is that there are neither detailed sectorial studies nor sectorial planning done on the labour market in Jordan. Thus an effective training program might not be able to be implemented. It is hopeful that when the E-TVET Council is properly in place and functioning, the labour market would hopefully be clearly defined. In the meantime the VTI business model would rely on its partnership with the local industries to provide information and their needs. The socio-economic development for the local community could be defined as the implicit client of the VTC although not explicitly mandated to be the function of the VTI. The VTI is the only receptacle among the three TVET providers in Jordan for those who has no other places to be trained in order to move up the socio-economic ladder. These shall include inter alia the unemployed, life-long learning, housewives and special groups. The indicators for the social planning shall include the quality of life, social sustainability and social development. The training model was designed to enable training for employable 22

23 job and life skills which cut across the basic needs of the individual and social capacity dimensions. The new VTI training model as detailed in the Training Model section was developed in view of employer driven and industrial competency education and training. By bringing in the workplace into the VTI, the VTI would be able to produce commercial standard products and services. This 'by-product' of the training system would be marketable to the open market and in this respect, the VTI shall act as a manufacturer and service providers to the open market. 3.2 Value Proposition The mandated functions of the VTI shall be the value proposition to the customers and clients in the business model. In other words, the training model of the VTI is the heart of the business model and is the main 'product' that the VTI offers to its customer and clients. The training model is developed to cater and offer quality assured demand driven trainings to all categories of inputs mentioned above which should fulfil the needs of the VTI customers and clients. Aside from the quality assured demand driven trainings as the value propositions of the VTI, the 'by-products' of the trainings which are commercial quality products and services shall also be the offerings of the VTI. Having such capabilities, the trainers at the VTC would be highly skilled and innovative and would be aware of the latest technology in the sector. Thus another 'by product' that the VTC could offer to the private sectors is in the form of consultancy and problem solving services to its customers and clients. This would relate to coming up with new solutions to individual customer and client problems. 3.3 Customer Relationships In order for the VTI to get its inputs to be trained and to market its products and services, the VTI should establish relationships with its customers and clients. This relationship should enable the VTI to find, attract and win new customers and clients, nurture and retain those that it already has, entice former customers and clients back into the fold, and reduce the costs of marketing and customer/client service. Customer relationship management in the VTI describes the institution-wide business strategy including customer-interface departments as well as other supporting departments. A good customer relationship strategy shall ensure the sustainability of the VTI business model. 3.4 Channels Directly, the VTI shall use its industry standard facilities as channels to its customers and clients. These facilities shall encompass both producing quality graduates and producing products and services. Channels describe how the VTI communicates with and reaches its 23

24 customers and clients to deliver its value propositions. The VTI would also conduct trainings at customers and clients premises if requested. In addition by establishing a good partnership with the private enterprises the VTI can create 'partner channels' which shall allow the VTI to expand its reach and benefit from partner strengths. This shall be the indirect VTI channels. The VTI channels should have the following phases: The VTI should make its customers and client aware of the VTI's value propositions. The VTI should educate the customers and clients on how to evaluate its value propositions and make the customers and clients form good opinions about the VTI's value propositions. The VTI should inspire the customers and clients to make decision to employ its graduate or to procure VTI products and services. The VTI should find the best way to deliver its value propositions. In the case of its graduates, the VTI should do job matching or train-and-place programs. As for socio-development, the VTI should be pro-active to coordinate with the local government and community leaders to develop training programs that would improve the socio-economic indicators. The VTI should do follow-ups with its customers and clients. This shall help the VTI to get information on the effectiveness of their training programs and also the quality for their products and services. This information shall be used in the continuous improvement cycle of the VTI business planning. 3.5 Revenue Streams As in any other businesses, the revenue streams are how the VTI gets its revenue from. The revenue from the revenue streams must be enough to cover the cost of the VTI operations with allocations for continuous improvements and be redeployed within the VTIs for employee performance related rewards. Due to the dual facet of the VTI mandate, the revenue generated from the offering of the VTI value propositions would not only be in monetary form; but, also the value of the socio-economic development in the form of key performance indicator achievements. The relationship of the value propositions, customer relationships, channels, customers/ clients and the revenue streams is shown in Figure

25 Figure 3.1: Relationship of Value Proposition. 3.6 Key Resources The VTI shall use its key resources to create and offer the value propositions, reach the markets, maintains relationships with its customers and clients and earns revenues. The VTI key resources include physical facilities, financial, intellectual or human. Physical resources include physical assets such as equipment, machines, buildings and facilities. It is interesting to note that currently some of the VTI has low enrolment due to their location which is quite a distance from the local residencies despites being in an industrial zone. There is a high possibility that if the VTI could have buses for transportation the enrolment could be higher. Visits to the VTI showed that there are substantial numbers of equipment, machines and other facilities are currently underutilised. This contributes to the inefficiency of the VTI operation. The VTI should develop strong intellectual property such as branding, proprietary knowledge, patents and copyrights, partnerships, and customers and clients databases. As training is the core business of the VTI, highly competent human resource is crucial. The trainers should have knowledge and skills which are at the same level or better than that of the private enterprises. This includes having real industry experiences. Moreover an effective delivery would not be possible without a competent management team. The 25

26 implementation of the VTI business plan calls for the VTI to establish an Institutional Business Planning unit (IBPU) or sector that, among its other functions; shall plan, evaluate monitors and maintain the total quality management system. In order to ensure a highly competent human resource, the VTI shall plan and do its own capacity building. In order for VTI to be responsive to the market needs, the VTI has to be a nimble organization. It should have the flexibility to make fast decisions that might have financial implications. As a business entity, the VTI should be capable to make such decisions in order for it to be relevant in its business. Financial resource is an important key resource in the business model and financial resource includes the adequate amount and the ability of the VTI to procure timely. The IBP is the heart of the VTI. It shall translate the new business model, financial model, training model and governance model to become the long term plan, strategic plan and the implementation plan for the VTI. Thus the IBP will keep the VTI focused on its objectives. The IBP will help the VTI to plan for the future, because the VTI will have already planned its activities. It will lay down a budget and predict future cash-flow so that the VTI will stay on-track in its drive towards the goal to fulfill the key performance indicators. The IBP will also help the VTI to identify areas that it might have overlooked or areas that require more thought and planning. The IBP will be the mechanism that will allow the VTI to transform to the new VTI a reality and it should be tailored to the precise circumstances of the VTI. The IBP shall ensure the quality assurance (QA) of the VTI at all time. The VTI shall be subjected to evaluation in nine areas of evaluation for quality assurance namely: Vision, mission, training goals and training outcomes; Training design and delivery; Assessment of trainees; Trainees support services (Trainees Affairs); Trainers; Training resources; Programme monitoring and review; Leadership, governance, administration and finance; and Continual quality improvement. Each of these nine areas contains quality standards and criteria. These standards and criteria have two distinct levels, i.e., benchmarked standards and enhanced standards. The degree of compliance to these nine areas of evaluation (and the standards accompanying them) expected of the VTI depends on the type and level of assessment. There are two main components of an institutional audit: the VTI Self-Review (internal quality audit) and the Institutional Audit (external quality audit). The self-review is done by the VTI and is the key component of the document submitted to the VTC and the Ministry of Labour for evaluation by the Audit Committee. The institutional audit is an external and independent peer audit conducted by a panel of auditors, who would evaluate the self- 26

27 review as well as visit the institution to validate and verify information given by the VTI and submit the final report to the VTI. The most important purpose of the Institutional Audit Report is continual quality improvement of the VTI. The feedback processes in the form of the oral exit reports and written reports promote accountability and reinforce the continual quality improvement process by validating the VTI s strengths and areas of concern. The written report is narrative and aims to be informative. It is contextual to allow comparison over time. It highlights strengths and concerns as well as provides recommendations for quality improvement. The Institutional Audit Report is made available to the VTC and the Ministry of Labor where it can be used for policy decisions to assist the VTI to improve their quality and standards. Figure 3.2 shows how the IBP maps the Business Model, Training Model and Governance Model into operational plan. Based on the MSCOE projects, a framework for the outcomes of the VTI is shown in Figure 3.3. Figure 3.2: Mapping of Business Model 27

28 Key Result Area Performance Indicator Measure Desired Outcomes Impact Increased of lecturers competence Trainers having industrial competencies % Trainers having knowledge, skill and attitude which are at par or better than the industries Excellent VTIs Trainers are referred to by the industries % Relevance and/with leading edge technology VET System Innovative Trainers Applied/Academic Journals % Existence of corporate culture in the VTC/VTIs Increased competence of student/graduate Graduates employed in their field of study or becoming technopreneur in their field of study % Students/Graduates having knowledge, skill and attitude which are at par with the industries Less unemployed graduates Industries reliance on VTIs Solved real industries problems number Trainers helped to solve real industries problems Industries becoming more productive products or services offered % sold Production of commercial products or services which are at par or better than industries Good industry relationships Community from the VTIs benefits Non-student from the local community attended/benefited from number Local community benefited from VTI to increase their socio-economic Increased the socio-economic of the local community 28

29 training at the VTI CSR Programmes number Increased cost effectiveness in the implementation VTIs VET program VTI operational budget % less Self-financed Lessened the government burden to implement education Equipment utilization % utilization factor Availability/operational equipment % Figure 3.3: Framework for outcome of VTIs. 29

30 3.7 Key Activities Among its key activities, the VTI are required to create and offer the VTI value propositions, reach markets, maintain customer relationships and earn revenues. The key activity of the VTI would be its mandated function which is to do training for the labour market and as discussed above, training for socio-economic development. However the new training model proposes a workplace based training for industrial competencies in which there would be 'by products' in the form of commercial quality products and services for the open market. Thus sub key activities of the VTI would be production of products and offering services to the open market as shown in its value propositions. Other sub key activities are for the VTI to do consultations and solving customers and clients problems in their specific sectors. 3.8 Key Partnerships As any other business entities, to be successful the VTI shall need a strong network of suppliers and partners that make the business model work. This would include creating alliances to optimize the business model, reducing risk and acquire resources. Especially in the business of the VTI key partnerships is a cornerstone to its business model. One of the consultant findings during the public private partnership (PPP) workshop is that the PPP mostly failed due to the one-sided nature of its partnership. The private sectors did not see the value of the partnership, other than their corporate social responsibility nor was it a win-win partnership. The proposed training model shall rely heavily on the PPP for it to be successfully implemented. In the proposed training model the VTI shall need the industries in ensuring the quality of the VTI training which includes curriculum development, training of trainers and development of products and services. The VTI shall enhance and redefine the PPP by: forming strategic alliances with the private enterprises by offering values to each other forming joint ventures to develop new products ensuring reliable supplies through good buyer-supplier relationships 3.9 Cost Structures In order to implement the business model effectively and efficiently the VTI need to develop its cost structure. The cost structure shall describe all cost incurred in the operation of the VTI such as creating and delivering value, maintaining customer relationships and generating revenue. The cost structure of the VTI shall vary from costdriven and value-driven depending upon how best to achieve the key performance indicators for the VTI. Cost-driven programs minimize the cost wherever possible. They should be aimed at creating and maintaining the leanest cost structure using low price value propositions and extensive outsourcing. A possible example of such programs is using industrial partners facilities to conduct trainings on expensive machines or paying 30

31 an external expert to conduct a one-off training. On the other hand, value driven programs would focus on value creations. In this category, the programs costs would be higher but so are the revenues. This cost structure is suitable for programs targeted to niche customer and clients. Example of such programs would be trainings for socio-economic development and high technology personalized trainings. The relationship between the value propositions, key resources, key activities, key partnerships and costs structures are shown in Figure FINANCIAL MODEL Figure 3.4: Relationship between Key Activities. As discussed above, the mandate of the VTC is dual facet. The VTC has to do training of skill workers for the labour market and also training for socio-economic development. Logically if VTI is a business entity, success is measured in monetary profit; hence, the training for the socio-economic development should not be its priority business. Consequently the government should contribute financially to the VTI in order to enable the VTI to function for socio-economic development. Moreover, a good supply of highly skilled manpower in targeted sectors would help in nation building and translate into increased gains of the economy of Jordon by bringing in FDI and increase of exports. The Consultant s findings through the Modified Delphi survey concurred with this fact where the majority respondents agreed that the government should still finance the operations of the VTI. On the other hand, the consultants found that the current budget allocated for the VTI would not be enough if the VTI were to implement the new business model effectively. Since its establishment, the VTI in general, has had only small improvements due to 31

32 budget limitations except for the VTIs that were under some donors programs like the JICA and the USAID. The rollout of the projects initiated by the donor was not possible due to the same constraint. It is well understood that good TVET programs would require high financing. Consequently in the new business model, the VTI would have their own monetary revenue from the offerings of the VTI value propositions. Despite some arguments on this form of business model, it is a proven working model. Countries like Indonesia, Thailand and China has successfully implemented some form of this model. The balance between the government contribution and the revenue generated by the VTI is shown in Figure 4.1 below. J Government Allocation VTI Revenue / Donors/ TVET Total YEAR Strengthening Excellence Sustaining EDS Investment Plan Figure 4.1: Government Contribution and Revenue Generated. It is proposed that the government shall continue financing the VTI for the basic salary of its staffs and per capita training grant for trainings conducted. This will put the VTI on a 32

33 minimum operational level. In order to ensure the investment from the government financing, an Outcome Based Budgeting System is proposed. In this budgeting system a contract between the government and the VTI shall be drawn. This contract shall be negotiated and shall outline all the key performance indicators that both parties agreed to. The KPIs shall be part of the reward structure and the basis for performance based, hire and fire human resource management system of the VTI. The VTI shall use its generated revenue for its institutional continuous development and employee performance related rewards. The institutional continuous development would include the capacity building programs, maintenance of facilities and equipment, procuring raw materials, procuring machines, tools and equipment and other operational matters. Other form of revenue streams to the VTI might include donors programs and TVET financing. With the IBP in place, the VTI would use these revenues effectively to its benefit and would move faster to the next phase of the transformation. In the proposed financial model the implementation of the business model shall be divided into VTI strengthening phase, VTI excellence phase and the sustaining of VTI excellence phase. The Component 2 of the ESDSP project shall include the investment plan for sustainability of the business model. The investment plan shall help VTI to reach the strengthening phase, the basis for the excellence phase. The continuous increment in the government financing shall be necessary to pull the VTI up to a level that would enable it implement the business model effectively. The government investment shall plateau in the excellence phase with a small increment to cater for depreciation of the Dinar and increment of salary as stipulated in the government salary scheme. It is expected that the revenue of the VTI shall increase significantly in the VTI excellence phase because of the VTI increased operating capacities. The revenue should keep on increasing at a smaller rate if the VTI inculcate value innovations, total quality management system and continuous improvement in its institutional business plan. In the excellence phase, the VTI would already be the leading TVET provider and reference of best TVET practices nationally, regional and internationally. Having adequate finance would not necessarily ensure effective implementation of the business model. Effective implementation of the business model would require the VTI to be a nimble organization. As mentioned by previous studies in other donor projects, such capacity would not be possible with the current laws and procedures. The VTI should be able to do timely procurement of products and services it requires in implementing the business model. This is critical in order to maintain the VTI customers and clients trusts. Although the Law No. (50) for 2001 stipulates the administrative structure of the VTC and provides for the VTC s establishment as a legal entity that is financially and administratively independent; the unavailability of its by-laws has hindered the VTC from effectively exercising in full its responsibility. This resolves the VTI to other means to circumvent the regulations like the current practice of having a trust account for accepting and distributing revenue from the training done by the VTI. This solution would be helpful 33

34 in the initial phase of the implementation of the business model while waiting for the bylaws to be approved. The establishment of such trust fund in the VTI with proper monitoring mechanism would allow VTI to be flexible in its operations. 5.0 THE NEW TRAINING MODEL 5.1 Definitions The following section provides some basic definitions relevant to the New Training Model. The explanation [definitions] refers to the context of the development of the new training model for Vocational Training Corporation in Jordan. Semi-skilled Level Training Semi-skilled Training Level requires a number of hours not greater than 700 hours. Applicant must have the ability of reading and writing and not younger than 16 years old. Skilled Level Training Skilled Level Training requires a number of hours not less than two terms and not exceeding four terms, 700 hours for each term. Applicant must complete 10 th Grade and is not younger than 16 years old. Craftsman Level Training Craftsman Level requires, to specialize, a number of hours not less than two terms and not exceeding four terms, 700 hours for each term. Applicant must have completed a Secondary School Certificate. After completing the activities and methods of training prescribed, within the duration of two to four semesters, the enrollees are qualified to apply for the Craftsman level examination. Competence The proven or demonstrated individual capacity to use know-how skills, qualifications or knowledge in order to meet the usual and changing occupational situations and requirements according the standard. Production Based Education The process of learning/training is based on live production based training. Real work process delivered to established individual competence to use know-how skills and knowledge in order to meet the usual practice by actual occupational situations and requirements for the needs of work place. This is also called work-place based training. Didactic Mapping Didactic mapping is a process or method that follows a consistent technical approach or educational style to engage the student s mind with the actual work process. The process 34

35 can also be used to refer to a specific didactic method, to merging industry work process into module and/or sub-module content. Work Process Knowledge Work process knowledge is a business, production and labour process the overall configuration of the commercial and/or industrial productive capacity of the company, task performed across company and the way the workforce is deployed in order to carry these task. Definition of TVET Those aspects of educational process involving - in addition to general education - the study of technical knowledge and the acquisition of practical skills, attitudes, understanding and knowledge relating to occupations in various sectors of economic life. Qualification framework The structure into which accredited qualifications are placed, allowing learners, training providers and employers to gain information about the broad equivalence of qualifications. Effectiveness Effectiveness is the extent to which an activity fulfills its intended purpose or function. Efficiency Efficiency is the extent to which an activity/ system achieves its goal whilst minimizing resource usage. Learning Outcome The set of knowledge, skills and/or competences an individual has acquired or is able to demonstrate after completion of a formal, non-formal, or informal learning process. 5.2 Development of the New Training Model The transformation of the Vocational Training Corporation has a significant impact on the three key sub-components of the restructuring of VTC. These components are Business Model, Governance Model and Training Model. The integration of the three subcomponents is intended to implement the reforms of the new image of VTC. This paper highlights the restructuring of VTC as impacted by the new training model. The content describes the development of training model according to the changes with business and governance models. Mandated by the Term of Reference (TOR), The New Training Model will be based on employer driven training principles and will be characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability (Figure 5.1). The model will outline the training cycle including a process for system-wide planning, needs assessment, training identification, design, delivery, and standardization 35

36 and evaluation, using a competency based approach. It will define the roles of Headquarters and Centers in planning for and evaluating training and responding to industry needs. It will address accreditation and certification and will include standards and processes to ensure trainers are up-to-date and current in their skills and knowledge. The Training Model will link the VTC to the external partners in TVET including the Centre for Accreditation and Quality Assurance, the TVET Council and other training providers. It will include a clearly defined role for industry. TVET system has not yet achieved close employer involvement in directing and assessing TVET. Employer involvement is strong downstream in the training process of the VTC, as noted above, but little effective participation exists for the social partners upstream. Jordan has so far had limited success in achieving employer involvement upstream in the training process in planning, setting standards, designing content, and testing the competencies acquired. Input responsiveness relevance cost-effectiveness efficiency accountability sustainability Jordan National Agenda Internal Quality Control Quality Assurance UTHM Holdings & VTC Jordan 4 Figure 5.1: Characteristic of the New Training Model from the TOR From Figure 5.3, estimates indicate that only 6% from the school dropout were channeled to VTC. The number of enrolment has been reduced yearly causing the number of VTIs to be underutilized. 36

37 world of work Age Technical Certificate Craftsman continuous skilled semi-skilled 17 secondary school G11, G12 vocational school G11, G12 dropouts 15 dropouts 14, 13, 12 primary school (MoE) 7,8,9 Figure 5.2: Structure of the Jordanian TVET system Figure 5.3: Jordanian Education System 37

38 The structure of the Jordanian labour market does not function well in terms of allocating human resources to their best use and maximizing productivity of human capital through proper incentives especially at the time when the Jordan economy is undergoing transformation from tourism background to the diversified industrial economic sectors. These are challenges to the graduates to ensure their skills remain relevant to industries prevailing in Jordan. Among the skills that are to be acquired and developed by graduates are technical skills, knowledge, attitude, soft skills, personal, entrepreneurship, methodological and general education/ basic education and the skills of applying the theory and current technology in the real world of work. The industry at present does not only depend on the skills achievement itself, but they are also very concerned with the skilled workers technical knowledge, soft skill, life skills and other 21 st century skills as indicated above. 5.3 Studies from previous project Document analysis on three major joint projects carried out by JICA, USAID and the EU have found out that VTI decentralization need to be implemented, a training center must have a clear goal of training, performing regular and systematic monitoring approaches and relationships with industry should be established to ensure implementation of the program work process effectively. Examples of practices in previous project that may be useful to follow-up are reported as below; JICA Reports The project for Strengthening the Capacity of Training Management of VTC found that the training course should meet the labour market needs. Competency Based Training approach has been applied in the training model. The database which has been developed by the JICA project will be useful for VTIs to upgrade their management strategy in the future. The report also proposes the strengthening of monitoring and evaluation capacity for instruction by instructors. USAID Reports implementing model of the real work process. This has been applied in numbers of VTIs on hospitality. EU Reports To provide capacity building for the human resources information providers on both the supply and demand sides. Centre of excellent for reusable energy and water treatment and other project from EU are addressed to increase employment opportunities through improving education and training quality to meet the needs of skills required in the basic economic sectors. Canadian Project develop a training program for industrial safety in Jordan to assist in meeting the requirements of Jordanian national legislation. Providing suitable bases for more advanced or specialized training models, technical assistance provide sufficient flexibility to allow for both in-house and external delivery models. 38

39 5.4 Other countries best practices Most training takes place on the job, in either the formal or informal economies. However, given the dispersion, it is difficult to quantify and analyze. Targeted Enterprise-based Training has raised skills in the workforce of many countries (Japan, Thailand, Republic of Korea, and Singapore). Many countries made serious effort to upgrade training of workers in industry and included a corporate program for in-industry technical training; Indonesia also promoted in-service training for workers while Germany, Australia, Malaysia, United Kingdom and Singapore applied modular approach in support with industries for their training models. Popular model such as National Dual Training System (NDTS), School Enterprise Model (SEM), Teaching Factory Model and Competency based Training approaches are among many training models have been successful implemented by the different countries. 5.5 Methodology in Developing Models The Modified Delphi Method has been applied with active involvement of the Stakeholders and other members within the National TVET framework. A process formulated based on input from the training model workshops (28 & 30 November 2011) has been conducted involving the participation of the aforesaid members of the Advisory Board and Stakeholders. The input and information gain has been analysed and processed by the Project Consultant, then caused the formulation of an integrated output for the purpose of analyses and model designing. Repetitive process from the Delphi questionnaires/interviews [Delphi 3 rounds] resulted in concrete decisions on the proposals for the new training model. Findings from the Delphi responses have been compared with the previous reports and studies and support the common findings that were inputted in designing of the new training model. 5.6 Concept of the New Training Model Jordan so far had limited success in achieving upstream employer involvement in the training process in planning, setting standards, designing content, and testing the competencies acquired though not for the lack of trying. Numerous sector-specific training committees and curriculum groups have been formed over the years, at least initially with employer participation. However, it has proved difficult to sustain employer interest, given the time involved and the deferred results. Reports (JICA 2009) proposed the training by specific competency model to ensure graduates be able to accommodate the industry work tasks. 39

40 In general, industries do not only train new workers, but also retrain (on-the-spot training) others to enhance worker skills in an attempt to keep pace with production and technology changes. On-the-job (OJT) vocational training gives students the opportunity to be trained and to improve their skills directly at the work place. They are trained by veterans of the company/factory or qualified instructors were brought in from training centers. Or they can learn theory at the training centers, and practice at the factory/company. This type of training can also be done in handicraft institute (Salt VTI) in the form of handing down this tradition from one generation to the next. 5.7 Modular Competency Based Education and Training (MCBET) MCBET have been identified as strategic training approach. Based on finding analysis from the three stage Delphi questionnaire and the training workshop, it shows that consequent findings lead to CBT as the preferred approaches. MCBET was developed to overcome the constraints of lack of competency among students who were unable to fulfill basic knowledge and is designed to prepare and expose the students with the skills and knowledge that they will experience in the actual workplace. MCBET can also be seen as a preparatory tool to help students familiarize themselves with the actual working environment in the industry. The MCBET combines market production with systematic vocational learning. The teaching personnel are compelled to undertake continuing educational courses to adapt to new market conditions and to introduce new curricular conceptions adapted to new technological processes (Figure 5.4). The introduction of production assumes to bring the institution closer to the realities of life, particularly the world of work. It is also justified by the need to find new ways of teaching and learning so as to increase trainees interest and motivation in their studies/training. An important aspect of MCBET is the factor of motivation for effective learning through combining learning with production, in that the training underlines the importance of visibility of future returns. Through the synthesis of education and production, technical and vocational education institutions are expected to exploit new financing options for meeting training costs. 40

41 Figure 5.4: The process of The Modularisation Competency Based Education and Training The conceptual framework for Modular Competency Based Education and Training (MCBET) is shown in Figure 5.5. It includes two fields or contexts of working and learning. Education and training form part of the broader domain of learning, whereas productive enterprise forms part of the world of work. Each domain has its own characteristics and typical sets of activities. The major focus in combining the two domains lies in using productive enterprises as instruments to reinforce and enhance systematic and reflective learning, and for the sake of improving the relevance of education for later employment and self-employment as well as for sustainable socio-economic development of local communities and regions. The notion of MCBET is an approach to learning involving an organized and direct interaction between the development of knowledge, skills, and attitudes and values (competencies) with the nature of industry workplace environment. The subject is involved in both processes and there is some degree of planned and intentional interaction between learning outcomes and work process knowledge. The proposed of MCBET institutes concept adopts the Australian (TAFE) Competency Based Training system and German Dual System which also best practices from western countries TVET system. Industrial maturity and support, autonomous technical and vocational education with government policies to initiate partnership between industries and the educational and training institution will ensure the success of MCBET In the implementation of MCBET, good relationships between the institutions and private sectors are imperative. This form of Public Private Partnership is more attractive because it is a win-win partnership due to its symbiotic nature of relationship. 41

42 Figure 5.5: The Concept of Work Process Knowledge, Didactic Mapping and Modular Competency-based Education and Training The concept of Competency Based Training in the context of Jordan Vocational Education Training has been developed based on the feedbacks from the qualitative data collected using the Modified Delphi Method. This is to enhance the existing training concept based on the Employer-driven Skill Development which is related to the model of Work Process Knowledge. This new approach is based on the Competency Based Training Model which is in line with the work process in industries that has been introduced to enhance and transform the existing CBT system to a sustainable one. This new approach which involves modularized delivery of training, the so-called Modularized Competency Based Education and Training (MCBET), consists of elements that match with the process of the real industrial workplace. The approaches also will provide an exposure to the students/trainees with the actual work and relate the experiences with the workplace. This is supported with the Kolb s learning theory (Figure 5.6) which says that individual learn better through experiential learning. Working experiences from the activity in learning by doing will make them easier to relate their learning tasks with the real work in the competency approaches. 42

43 Figure 5.6: Kolb s Experiential Learning Lifelong learning skills will be integrated in MCBET education and training model. Students/trainees will have the opportunity to undergo training in the VTIs through an open system (open entry and exit), which means that they do not necessarily have to complete all the modules, but could choose according to their needs. In other words, they are not bound by the resolution of time in completing a module or sub-module. However, should they complete the whole set of module required for a particular certification they will be conferred the related certificate upon completion. During the process of using the module, students will be assessed continuously by internal and external evaluators in accordance with standards developed by the VTIs in collaboration with the industry. The proposed standards to be used are from the level of Institution/local, nationally and internationally. Recognition of the quality of training at the international level will give an advantage to VTIs graduates and this will add value to their competitiveness in the global labour market. The issue of management and administration of this modular system has been refined and enriched by taking into account the effective and efficient management system that use database to keep track of students in terms of their exit and entry registration with the institution. Application of the latest technology will be able to overcome the problem of students who are pursuing various programs and various levels of modules provided by the VTIs. It is important that the instructors be given adequate training to implement the process of registration, teaching, evaluation and assessment of students. Thus capacity building will be a critical agenda in this transformation. 43

44 MCBET Delivery Method Entry Didactic Mapping Exit Current Practices / Modules Work Process Knowledge (Industry Based) Classroom Modularise Workshop OJT Assessment 6 Components of The Graduate Profile Quality Assurance Figure5.7: MCBET based on module delivery method Modular-based teaching and learning requires a more systematic approach in the Management of Competency Assessment. In the usage of portfolio system, evidence of achievement is one of the alternatives to the management of VTIs. This is important to determine the students who are eligible to be awarded with the performance that is equivalent to the level of skill that they have achieved. MCBET will also provide students with a clear map and navigation tools needed to move quickly toward their goals. In an ideal world, MCBET is logically and clearly developed and generate other competencies needed in the workplace. In the context of implementing the MCBET, the pace of study becomes more manageable, through the use of modules that provides students with certain flexibility; and, an advantage to students particularly from the poor demographic background. Therefore, the inclusion of appropriate open entry and exit is a reality of Jordan and if it is strategically implemented, it could address the issue of enrolment and social responsibility. After a short while of achieving competency in an employable module, a trainee can find work and may go back to the VTIs for further training in other advanced modules in the family of occupation he has chosen. Transfer to other VTIs may be enhanced since modules are standardized. 44

45 5.8 MCBET Characteristics The characteristic that has been identified for the training model are as follow (Figure 5.8): Competency based Training (CBT) is actually learning by doing and by coaching. It is necessary to incorporate the principles and methodology of CBT into the formal technical and vocational education system. The delivery of quality TVET is also closely linked to the building of strong, professional management and leadership capacity as well as a suitable qualifications framework and monitoring mechanism to drive the entire system. Six (6) component of Graduate Profile Skills (KSA), Personal, Soft Skills, Methodological, Entrepreneurship and General Education. Open entry and open exit system -The intake of students based on the terms set by the VTIs. However, they allow enrollment with any VTIs that offered related courses and module which fulfill their complete packages. Duration of training modules based on the content being developed based on fieldwork related to production work flow. Educating (soft skills, personal and methodological skills) while training the skill that embedded in the learning content for competency curriculum as required by the industry. Highly modularized system introduced to ensure graduates be able to take their preferred training based on specific job task. Each unit is planned in such a way that it can be possible to connect it with the other units (or other credits acquired in a different form rather than training courses). A module-based training package consists of several units of the module. The combination of these modules will qualify for the achievement of students awarded certificates at a certain level. Actual work place environment setting Students will be able to experience actual work environment. They will be given exposure, opportunities and real work experience. Production as a source of training work process knowledge toward a process of designing, develops and implementing of the product based material. Awarded at the level of competency certification will be awarded to students based on achievement by their completed module packages. Continually learning - graduate should be able to further their study after completing set of training packages. Didactic mapping process of comparing curriculum content with actual work process based in actual environment workplace in industry. Lifelong learning has a beneficial effect on the development of a high quality TVET system. This is because the skills of the workforce can be continually upgraded through a life-long learning approach. This also means that learners who have had limited access to training in the past can have a second chance to build on their skills and competencies. In later stage, RPL will be utilized and would be easily sync with CBET. 45

46 5.9 Framework and Curriculum Development Approach Modular Curriculum Framework for VTIs will be developed together with officials staff from VTC, industry representatives and selected trainers from VTIs to ensure that knowledge sharing can be implemented. This Framework will be developed to build a modular curriculum that is relevant to the industry and support the philosophy, vision, mission and objectives of both the VTC and industry itself. Approach to the development of modular VTIs Curriculum Framework will also take into account the conditions of admission to VTIs to implement an open door policy. The scopes of work for the implementation of this modular system approach are: Developing Modular Curriculum Framework for Vocational Training Institute. Develop modular curriculum areas that will be identified as based on the Modular Curriculum Framework Implement Training of Trainers course (ToT) Curriculum Officer in the modular curriculum design based Modular Curriculum Framework. Since the VTIs are an institution of learning under VTC, they must support the operation of the Jordan National Agenda and National Employment Strategy, priority plan. This means that the curriculum is implemented at the VTIs should take into account the desire within the meaning of Stakeholders and employers. VTC assumes a responsibility to develop the socio-economic conditions of their local community. Even VTIs should use the concept of "education & training" and not just training for skills such as training institutions under other ministries. This will help the VTC to develop the k-worker and k-society to achieve Jordan National Agenda. The consultant will take into account the industry and society needs for the developing of Modular Curriculum Framework. It will also ensure that trainee s personal and socio-economic needs are addressed Framework and Methodology Modular curriculum development framework for community colleges will focus on outcomes and work process knowledge' as shown in Figure 8. The curriculum was developed to combine the domains of basic knowledge, skills, aptitude (KSA), personal, methodology, entrepreneur and soft skills, taking into account input from education practitioner, industry and benchmark against international standards to ensure that the curriculum is relevant and based on the industry needs. 46

47 Figure5.8: Modular curriculum development framework for VTIs Mapping outcomes, work process knowledge, graduate profile domains and modules will use the popular approach of the present TVET as Process Knowledge Work and learning models (Figure 5.8). Modular Curriculum Framework will facilitate the development of a systematic curriculum process. It also will help the curriculum to ensure consistency of outputs and outcomes. The curriculum developed will be modular and flexible and will allow its implementation that depends on the interests and needs. Sub-modules of these modules will be developed as modules to be implemented for the short course programs. Students/participants will be awarded a Certificate Modules awarded by VTC. Content module covers the knowledge, skills and soft skills will enable participants/students to perform a job or business in certain areas. The modules developed will be clustered by topic and appropriate level. After completing the prescribed set of modules students/participants will be eligible for a Certificate of Semi-Skilled, Skilled and/or Craftsman and Technical Certificate Levels by VTC. With a modular curriculum and developed in a systematic manner, the modules and sub-modules will be able to overcome the problem of the students and the lecturers particularly on time and material constraints. Figure 5.9 shows a model of modular based on Occupational Family which will be developed referring to the standard in VTIs Curriculum. 47

48 Figure 5.9: Work process knowledge and Learning models 48

49 Figure 5.10: Module Customizations based on Occupational Family 5.11 Quality Assurance in MCBET Models The Quality Assurance (QA) for MCBET model is accomplished through Registration, Certification, and Accreditation (Figure 5.11). Quality assurance for acquisition of individual skills is done through assessment and testing with regard to the acquisition of standard. Quality of the trainee from the institutions can be viewed in terms of inputs, processes, and outputs. The first input for quality is definition of Training Standards, based on occupational requirements. This can be seen from the level of work process knowledge which has been arranged specifically. The level of skills and knowledge of the training- instructor and work-based instructors is a key determinant of the quality of the training system at VTIs. Insufficient numbers and qualifications of instructors are among the main factors responsible for low quality of instruction. This applies especially to lack of industrial experience by trainers. Public bureaucracies seldom recognize the need to certify and compensate instructors based on industrial experience. Facilities, equipment, and materials also tend to be underprovided or not kept up-to-date. Therefore, instructor will be given enough knowledge input or training in order to ensure the program could be implemented as planned. This will be conducted in the second phase of the project. A Trainers Development and Certification Program will be designed, subject to the results of the organizational and HR Audit. It is envisioned 49

50 that an agreement will be reached between the UTHM/Ministry of Higher Education [MoHE] Malaysia on the development of the TDI, into a HR and Strategic Unit in VTC Australia (TAFE) has taken several steps to raise quality assurance in its TVET system. A structure of standards-based qualifications has been developed. Training packages have been adopted based on competency or unit standards, guide for assessment of achievement of those competencies, and the qualifications framework. The standard and quality in MCBET has been defined as local work process procedures as has been initially developed by CAQA. Quality Assurance for VTIs training system will be determined in three levels: - Training standard training must be certified by external standard to ensure content of curriculum fulfill the need of industry. - Competency standards - level of competency proposed by the VTC through the process of didactic mapping with the work process. - Competency assessment - performance evaluation will be evaluated by the instructor and/or evaluator recognized only by the VTC (internal) and CAQA (external, preferably from industry). Figure 5.11, shows that the standards of Competency-based Training are involved the process of various standard evaluation and assessment. MODULARISATION COMPETENCY-BASED EDUCATION & TRAINING STANDARD AND ASSESSMENT MANDATORY REGISTRATION TRAINING REGULATIONS MANDATORY ASSESSMENT ACCREDITATION Figure 5.11: Competency-based Education and Training Standard and Assessment 50

51 5.12 Centre of Excellence A good number of VTIs had been provided with grants and subsidies from donor agencies/countries. The Tourism, Hospitality, Specialized Center on Metals and Handicrafts are using production based training and produces at the same time saleable goods and services in addition to training outcomes. These VTIs operate as a Production Based Education/Training institutes. The institutes are able to generate income to support some of their business/programs. However, as a rule of thumb, only about a fifth of operating costs can be realized through production of goods and services (Ziderman, 2003). Five methods can raise additional money for VTIs beyond government subsidies: 1. enterprise contributions including payroll levies on employers; 2. tuition and other fees paid by trainees and their families; 3. production and sale of goods and services by training institutions; 4. community support and donations; and 5. Indirectly, expansion of nongovernment training provision. In order to enable some centre to be operating as production based education and training (PBET), it is recommended to upgrade the VTIs with sufficient capacity building to run under the PBET system. Findings from several visits to some VTIs showed that the institutes have high potential to be converted to PBET system. This can be shown in the Figure 5.12, Draft Framework for the CoE Development. SALT Al - Balqa STIMI VTIs CoE Framework KRAs KPIs Outcomes Impact Curriculum Training Systems Expertise Technology Etc. VTI 1 VTI 2 VTI 3 VTI 4 VTI 5 VTI 6 VTI-STI VTI-STI VTI-STI MS CoE (Sectors) Institute s Business Planning VTI 7 VTI 8 VTI-STI CoE / EDSDP VTI n VTI-STI Figure 5.12: Propose Framework for Centre of Excellence (CoE) The lesson learnt from the common framework of the existing CoEs is applicable to the other VTIs. An Alliance Program (AP) could be established between developed CoEs to 51

52 assist VTIs to develop their areas of competencies [based on their actual community needs] over a short period of time as defined in the business model. They may eventually develop into Specialized Training Institutes [STIs] with high level of skills in their areas of competencies. The Institute s Business Planning [IBP] will be a prominent feature of the capacity development of the VTIs, The VTIs will be provided with capacity building to be able to plan for themselves, identify their weaknesses and strengths, and through the processes of self-analysis [individual and institutional] and continuous improvement process [CIP] be able to chart their own development. Using this standard ISO process will surely install a truly decentralized decision making structure in the VTC operating units - the VTIs. Competency-Based Training [CBT] provides several advantages over time based training, including greater learning effectiveness and use of time. Its requirements must be analyzed and addressed, including development, teacher training, equipment, and publicity and/or awareness-raising. MCBET has been proposed as new training model for enhancing and continuously evolving the VTIs to a quality journey Vocational Training Information System Currently, there is a Training Management Information System [TMIS] established from JICA Grant and contain detailed information collected, for the use of the Directorate General for Training. Information on the other functions needs to be monitored and expanded into a Vocational Training Information System (VTIS) to provide holistic information for VTC management planning and decision making, including an HRIS, FMIS, among others. 6.0 VTC GOVERNANCE MODEL 6.1 The Core Business of VTC Training is Core Business of VTC. The new VTC will be reorganized to allow it to be autonomous within a decentralized system. The training function through the institutes will be the center of attention and main target for all support services provided by VTC s directorates and administrative units. The organization, as the name suggest, will be fully reoriented towards the development, facilitation and effective delivery of the training function. The efficiency and effectiveness of the training function has not been fully appreciated due to the poor quality of trainers, weaknesses of the private sector s involvement in determining the needed training delivery methods, poor orientation of training programs and the quality of trainees from educationally and socio-economically disadvantaged clientele. The budget process, preparation and implementation, are perhaps the most frustrating experiences faced by the VTC. The preparation of the annual budget and 52

53 getting it approved by the Ministry of Finance (MoF)/Cabinet/Parliament and disbursing it in time for timely delivery of training and training related services poses a serious organizational problem. VTC s reliance on the Government as a major source of funding raises questions and threats for the implementation of the new VTC to be able to continue effective provision of training and other related services. This dependency has not positively impacted on the quality, relevance, consistency and sustainability of VTC training and training services. 6.2 Growth Phases of VTC A growing organization like VTC is likely to encounter the several phases of organizational growth. Greiner 4 has describes the phases that organizations pass through as they grow, regardless of the type of organization. Each phase, like what the VTC has encountered is characterized by a period of evolution in the beginning with steady growth and stability, and ends with a revolutionary period of organizational turmoil and change. Greiner growth model, Figure 6.1, is used as a starting point for thinking about the growth of VTC. It will help understand the specific problems that belong to the particular growth phase that VTC is in, and therefore provides with the possibility to anticipate these problems in time. This model demonstrates that changes in management style, organizational structures and coordination mechanisms are appropriate and necessary at different phases in the development of VTC. Phase 1 [Creativity], in the second half of the 70 s, the growth period emphasized on creating a good product _ training. The founders were in-charge, technically oriented, focused on making the best product [Skills Training] and were able to sell it to industry. As the Corporation grew, the organization became more complex and the founders are struggling with the burden of managing the corporation instead of running it. Through the lack of decisive directions, the Corporation enters a leadership crisis. The critical choice was to locate and install a strong business manager who can pull the organization together. 4 Greiner, L.E. (1998) Evolution and Revolution as Organizations Grow. Harvard Business Review 53

54 Figure 6.1, VTC Growth Model using Greiner s Model (source: Greinier ) Phase 2 [Direction], the Corporation in this phase has succeeded to install a capable business manager who created a functional organization structure, providing for incentives, budgets; but has a top-down management. The management style funneled energy efficiently into growth. However as the corporation grew more complex top management was no longer able to oversee all operations, and lower management felt tied down. Management moved to delegate to a few trusted persons, thus the autonomy crisis was born. Phase 3 [Delegation], evolved unwillingly from top management to some critical offices and management acted more by exemption. Once again, the corporation embarks on a period of relative ease and comfort, until top executives feel a loss of control. Managers are acting independently, running their own units. As Greiner effectively puts it, freedom breeds a parochial attitude. The corporation fell on a crisis of control. Management attempted to regain control and has drowned in the vast scope of operations. The solution was to find ways to co-ordinate rather than control. Phase 4 [Co-ordination], having survived the control crisis, VTC tried centralization of support functions and corporate scrutiny of capital expenditures. Overtime the watch-dog mentality began to take toll on middle and lower levels management. Eventually the 5 Greiner. L.E. (1972). Evolution and Revolution as Organization Grow, Harvard Business Review. Vol 50(4). 54

55 rules and procedures became a goal rather than a means. The VTC got stacked in the red tapes crisis. The organization has to increase its market presence, and its people need to be more competent and productive and the entire system needs to be flexible to meet fast changing market demands. Phase 5 [Collaboration] is confronted with an internal growth crisis, which means that the only way the organization is able to grow further is by collaborating with complementary organizations. Phase 6 [Alliances], in this phase the VTC has to rely on extra organizational solutions, such as PPP, allowing outsiders to manage some units and programs. The recipients organizations provide extra resources and know-how, technology that the corporation sadly lacks. The Corporation has to generate part of its income to survive and to provide incentives to staff to keep the technical personnel and competent trainers, particularly, from leaving the organization. Since the VTC would not be able to supply necessary training resources/equipment to keep up with industry standards, it has to build alliances with the community and industry for workplace-based training. 6.3 Governance Model Under the present project TOR, the EDSDP second component on Restructuring of the VTC, involves designing and implementing new business and training models within the established governance structure and regulatory framework of the VTC to create an organization characterized by responsiveness, relevance, cost-effectiveness, efficiency, accountability and sustainability. The Delphi Survey conducted by the Consultant with TVET and industry experts/participants points out overwhelmingly that the current laws need to be amended to effectively restructure and implement a new VTC. The Advisory Committee for Public Private Partnerships, with oversight for Model Centres is working on the training model framework with a business model with the Consultant as mandated by its TOR. The Consultant reviewed the issues, challenges, required restructuring and changes in VTC. It focused on key areas: (i.) Legal Mandate and Governance of the Institution; (ii.) Organizational Structure; and, (iii.) Institutional Performance with a focus on the Human Resource. The Governance Model is a framework 6 for ensuring VTC Management efficiency & accountability and to support change. It will be mandated by laws [and by-laws] to be able to implement effectively the designed training and business models. It will cover basic management functions such as Administrative and Financial Management, and be able to provide for the development of a capable Human Resource with a culture of 6 Framework shows the integratedness of the models to ensure their effective implementation 55

56 performance and quality. Figure 6.2 illustrates the integration of the Business, Training and Governance models, mandated by enabling laws and an effective communication program _ The New VTC 7. Figure 6.2 The New VTC The Governance Model, will enable the new VTC to efficiently and effectively manage the implementation of the training and business models and is composed of the following basic sub-components: Strategic plan with identified Key Performance Indicators [KPI] and Milestones Process Management System, with a strong Monitoring System and defined procedures for continuous improvement and sustainability; Organizational Infrastructure detailing the roles, relationships, responsibilities and accountabilities of the units from the lowest unit of the VTIs to the central HQ; and where decisions at the proper time and place and will be decentralized and taken; Human Resource Development and Management System for an empowered workforce, that is motivated and committed to the vision and mission of the new VTC and including: Employee Planning, Recruitment & Selection, Training & Development, Performance Appraisal, Compensation & Benefit, Employment Welfare, and Career Planning and 7 Legal = mandates of laws; Gov. = Governance; BM = Business Model; FM = Financial Model; TM = Training Model; Communication = Communication Support system 56

57 Succession Partner with Stakeholders and other Allies for proper directioning and effective implementation of its programs; and a Quality Assurance Framework, where everyone is responsible for Quality. Mandated By Enabling Laws, not only that will make governance more effective instrument of development, but also an efficient implementer of its programs and services 6.4 VTC Legal Mandates Serious analyses of the legal mandates of VTC to conform with the new proposed models [training, business and governance] is being undertaken to see why the organization is currently undergoing a crisis of identity, purpose, governance and image. Omissions and Inconsistencies 8 in the various enacted Laws are identified by the World Bank Funded Project Component Document. General impressions are that the law lacks any reference or guidance to decentralization, spans of control and delegation of authority. The lack of such guidelines in the mandate has clogged decision making bottleneck at the top. Routinely and simplistic procedures usually require the approval of the DG. This has created serious procedural problems and frustrations especially, in financial matters. Reports and related studies have identified examples of these problems. The impact of this inefficiency has left a poor impression of VTC among employees, employers and other stakeholder. It is also suggested strongly by these studies, [which are available], that these series of laws must be studied holistically and be amended as a pre-requisite for all other reform actions. Without amending the current law, not much can be achieved in the reform process of the organization. The following lists a layer of related law mandating the VTC: Started by founding Law 35 (c 1976) which was fully amended by Law 11 (c 1985) which expanded the scope of VTC to include SMEs as part of its population target. Also covered occupational health and safety as functions of VTC. Governed by Laws 50 and 27 and also by a host of governmental by-laws and procedures implemented by the Ministry of Finance, Ministry of Labor, the Civil Service Bureau [and other government agencies under the direct supervision of the Prime Minister]. Law 50 (c 2001) focuses on the overall organizational and functional mandate of VTC with special reference to governance and other primary tasks of the organization. Law 27 (c 1999) provided VTC regulatory function, to classify and license people and enterprises [based on a Jordanian Occupational Classification System 8 Theodory, George C., The Vocational Training Corporation, Employer Driven Skills Development, The Vocational Training Institute Reform And Development Project _Project Component Document, August

58 (JOCS) through quality control and inspection services]. Law 27, mandated VTC to introduced curricula, that is more responsive to the occupational classification system (JOCS) JOCS translated the curricula into training programs, which addresses the semiskilled, skilled and craftsmanship levels. Aside from the law behind the establishment or corporatization of the VTC 9, is governed by three legislations: 1. Human resources are covered by Civil Service By-Law No. (30) of 2007 and Amendments 2. Supplies is covered under the Supplies Act No. 32 of 2007 and Amendments 3. Financial and procurement is covered under Financial Law No. (3) for 1999 These laws however should be read in the light of the VTC Law 10 which stipulates that it is financially and administratively independent. Though the provision for independence is in place by virtue of the VTC law, the VTC is governed by the above-mentioned laws as a result of delay in the approval of its own By-Laws 11. Under the aforesaid laws, the prevalent theme is that the decision making process is centralized under the office of the Minister with respect to his/her Ministry and departments attached thereto. Civil Service Law, Article 7 of the By-Law 12, provides for the establishment of a Civil Service Council headed by the Minister of Public Sector Development. Members of the Civil Service Council consist of Ministers from various the Ministry of Education, Ministry of Finance, Ministry of Labor, as well as Ministry of Health. In addition, the membership of the Council also includes the President of Legislation and Opinion Bureau, President of the Civil Service Bureau, the Secretary General of the Prime Ministry, and three individuals of competency and expertise appointed thereto by the Prime Minister for 2 years (they can only be reappointed for one additional term) upon recommendation from the Council s Chairman. 6.5 Framework of the new Governance model To fully ensure the achievement of the project overall objectives a new mandate of laws & by-laws are to be developed to replace / amend the existing Laws of the VTC [and the related by-laws], which will support the implementation of the New VTC. Three key by-laws will emerge related to the Human resources, Procurement & Financial for the below reasons: 9 Vocational Training Corporation Law No. (50) for Vocational Training Corporation Law No. (50) for 2001; Article 3, Article Vocational Training Corporation Law No. (50) for 2001; Article 13 pending approval of (required regulations to execute the provision of this [VTC] Law)VTC is governed by the regulations established under the provisions of Ministries, Public Departments and Bureaus, related to financial, logistics.. 12 Civil Service By-Law. No. (30) of 2007 and Amendments 58

59 a. Article (3/a) of the Law in force links VTC with the Minister of Labor, a concept that is inconsistent with the logical concept of Restructuring of the VTC that is based on the public private partnership (PPP) through a complete managerial and financial autonomy of the VTC. b. The structure of the Board of Directors pursuant to Article No. (6) of the Law in force do not allow to give the majority in the Board to private sector membership which is considered as a legitimate target of Restructuring. c. The core of the Restructuring through the Business Model, in terms of decentralization and delegation of authority has no legal base, as the Law in force doesn't have a text to permit delegation of authority. 6.6 Multi-sectorial Alliances and Management of VT Building alliances with its stakeholders is critical to the restructured VTC. Figure 6.3 below, shows the hierarchical arrangements for multi-sectorial partnering. The organization shall be designed to be competent in working closely with the industry sector, since training is directly tied with the umbilical cord of industry. 59

60 Figure 6.3, The New VTC Multi-sectorial Governance Framework Procedures for effective VT implementation shall be developed in second phase to operationalize this concept at VTC. The entire breath of VTC operation shall be working with the industry and community and structural arrangements for multisectoral participation shall be provided in the design of the organizational architecture of the Corporation. Industry and community participation shall be included at various working levels from National Policy formulation, sector policy coordination, at national/regional management levels, at technical/functional and development level to institutional operation levels at the VTIs. It is also suggested that to effectively work together, both the VTC and industry representatives to the various levels of work shall be provided with training to better cope with their new responsibilities. The important legislations that should also be covered by the law to be proposed are related to the following Areas: 60

61 6.7 Autonomy Timely and effective decisions are to be made at execution levels to make the new VTC more efficient and effective. This is only possible by developing capacity of VTC staff at various levels to be more competent and committed by developing a culture of performance. Subject to national strategic direction set by the highest VTC body, the implementation units [VTIs] shall ne enabled to do self-analyses, identify their strength and weaknesses and set their own development plan based on their perceived needs in their service areas. Employing the continuous improvement process will assist the units ensure sustainability of the organization. Decentralizing decision making makes the unit responsible, accountable and committed. An effective and practical monitoring system need to be in place to support Management to evaluate regularly organizational performance. Figure 6.4, Line of Authority It was verified during Delphi Surveys that the establishment of the Regional directorates was intended to decentralize decision making at levels closer to operations. Although the distribution VTIs in the three Regional Directorates [RDs] is concentrated heavily in the central directorates, it is assumed that provided with adequate authorities, the regions can cope with their responsibilities of efficiently and effectively implementing their core mandates. It is envisioned that transformation and decentralization of basic functions to 61

62 the RDs will make more effective, responsive and committed structures at the operational levels. The provision of a direct line of authority from the Director General to the Regional Directorates [which are responsible for management of the VTIs in their respective regions] will improve decentralization of decision making as shown in Figure GM4. While the Delphi Survey overwhelming pointed out that this may require through capacity building, among other interventions, in both the RGs and VTIs to make this work. Also it is reasonable to consider splitting the central Region into two Regional Directorates [RD CA and RD CB]. 6.8 Institute Business Planning As indicated in both Business and Training Models, the VTIs, which are the direct providers of the VTC core business will need serious intervention to enable them of selfanalysis [institutionally and individually] and using the ISO process of Continuous Improvement Process [CIP] will be able to identify their Strength and Weaknesses, determine their needs and be able to chart their own pace of development. They will be brought up to a level that they could effectively underwrite their medium term strategic plans with accompanying annual operational plans. At central level. Strategic planning will be done at national level, with the establishment of Industry Boards to provide planning for industry by sectors. It is recommended that the allocations intended for CoEs be used as mutual development funds for the VTIs who develop their development plans along criteria to be developed by the VTC, taking the lessons learnt from the CoEs as incentive to pep up the planning and decentralization process. Alliances between CoEs and VTIs with common programs will be encouraged and developed. In due time, the VTIs will be able to identify their special areas of competencies. On a medium term, the consultant will develop an Investment Plan to support continuing development of the VTIs. [See also Figure 1: Propose Framework for Centre of Excellence (CoE)]. VTIs will be partnering with the industry and community to establish and develop working advisory groups to ensure that training is not only responsive to their needs but employers accept with satisfaction their graduates as partners. 6.9 Managing Board VTC will be directed and managed by a Board of Directors, Director General and executive staff. The majority of VTC Board of Directors to be nominated and appointed by/from the private sector who are concerned with training and its impact more than public sector. Participation of the employers in the determination and implementation of occupational standards and how these standards are complied with is crucial to the restructuring of the VTC. 62

63 The Board shall be more involved in the VTC undertakings. Meeting three times a year may not be enough to provide effective guidance to the VTC organization is common comments from members of the Board itself. The responsibilities of the new managing board shall be properly defined, similarly as with all VTC positions to make them more responsive, performance and quality driven, and committed. In summary the Board: Responsible for amending the mandates of the corporation prior to Cabinet deliberation; Overall policies of the organization, Organizational structure of the VTC, including the staffing, operational procedures; Appointing the Senior staffs including Training Directors subject to a criteria based on performance; Deciding the Salaries Scale, annual increments, incentives, and other remuneration based on equal pay equal work and performance; Set the Annual Plan and Budget Policy Direction Approving the Annual Consolidated Budget Proposal of the VTC. Chairperson of the Board _ from the private sector 6.10 VTC Revenues/Financial Sources Shall consist of allocations from the Central Budget and private sector contributions, grants from donors, development and other source of steady revenues. The VTC shall generate part of its income/revenues and use it subject to criteria to be approved by the Board based on performance as incentive to performing staff as part of an incentive scheme to spur a culture of quality and performance. Revival of the levy fund with criteria for its use and disbursement [by those who contributed to the fund] and Support Technical and Vocational Education and Training priority activities set by the sectorial council Strategic Planning Figure 6.5, Governance Process indicates Strategic planning to determine where the New VTC is going over the next year or more, how it's going to get there, and how it can measure or evaluate if it got there. Strategic Planning will be conducted to align the VT plans with the Vision, Mission and Goals of VTC as primary agency for Skills Development and to make participation in the implementation of the VTC Restructuring meaningful by reflecting on the following questions: Is VTC serving the Jordanian citizens? How do you know? Do you know why there is a VTC purpose, vision and mission? How do you get VTC Board and Staff to share in the Authority s vision and future? 63

64 Do to you need to improve the skills meet the changes facing VTC? Figure 6.5, Governance Process Approach The focus of the strategic plan is on the entire VTC, while the focus of a business plan is usually on a particular product, service or program. Strategic planning is a vital component in the wellbeing of a non-profit agency and an important asset in a manager s repertoire of skills. The Strategic planning will enable VTC to answer the following questions: Who are we? What capacity do we have? What can we do? What problems are we addressing? What difference do we want to make? Which critical issues must we respond to? Where should we allocate our resources? What should our priorities be? Only once these questions are answered, is it possible to answer the following: What should our immediate objective be? How should we organize ourselves to achieve this objective? Who will do what when? VTC strategic planning includes: Conduct an organizational audit of all organizational entities of the VTC including the current allocation of resources (human resources, equipment, furnishings, supplies, buildings, training budgets, revenue, training materials, etc.) Do a gap analysis between the organizational requirements and existing 64

65 situation, including the gaps in skills and competencies of individual staff to be able to implement the new design. Develop a Staffing Plan for the VTC including each of the regional Training Directorates, Institutes and Headquarters that is aligned with the business and training models. Develop a Training Plan detailing all training required to implement the new models. Support and supervise the implementation of the Staffing Plan. Deliver the training according to the Training Plan Allocation of Resource / Funds Shall be based on realistic planning by the various units following the Strategic Planning and Budgeting Direction of the Board. The Basic units shall be provided with training on Institution Business Planning using self-analysis and the continuous improvement process in developing their own medium term plans and annual operations plans Quality Assurance Framework The success of implementing the VTC quality assurance system is entirely dependent on the commitment made by management and staff. The Quality Policy shall be spelled out in a Quality Manual which is defined as a document spelling out the general policies, procedures and practices of the organization. Organization is split into authority and responsibility, personnel and management representatives and resources. Management will review the effectiveness of the quality system to make sure policies and objectives are being fulfilled and to evaluate the need for any change in policies resulting from changing circumstances _ continuous improvement. 65

66 Figure 6.6, Customers Perception of Quality Figure 6.6, provides the new VTC a reference point for rating customers satisfaction. The overall perception of quality will be weighted by the customers ranking of the importance of Features versus Consistency and the value of money. A quality framework is shown in Figure 6.7 to guide the organization towards its quality journey. Quality assurance will focus on institutional matters such as the philosophy and objectives of the institution; procedures for quality assurance; personnel policies; facilities and equipment; and student services. Quality Audit should be conducted every four to five years on the basis of self-assessment study and confirmation by an external audit body. The confirmation is through a visit or series of visits by members of technical expert panel(s). The main purpose of such periodic review is to establish the continued fitness of the VTC to deliver training provisions complying with prescribed training regulations and agreed standards. 66

67 Figure 6.7, A Framework for Quality 6.14 Methodology The Consultant together with its Counterpart team will draft and submit the VTC new bylaws concerning the Human resources, Procurement & Financial system. The New VTC will be performance-driven as shown in Figure 6.8, through a VTC Competent workforce. A Human Resource Planning and Management [HRPM] unit will be strengthened and made responsible to the VTC management for attracting, recruiting, developing and retaining current employees, and integrating new employees, and deploy employees throughout the organization through a Staffing Plan based on competency requirements of defined jobs and tasks. The staffing plan will have a back-to-back Training Plan to develop full capacity of the staff for its new responsibilities. 67

68 Figure 6.8, HR Strategies Framework Figure 6.8, HRD Strategies Framework shows major aspects of the proposed Human Resource Planning Management unit to include: Organization Design Job Descriptions/Tasks analyses Training and Development Performance Management processes Sourcing Strategy / Recruiting / Selection Succession planning Leadership development / Career Management / Retention programs Rewards Strategy / Promotion Other HR intervention, subject to organizational and HR Audits shall be identified during phase 2 as indicated Figure 6.9, HR Audit Process. Organize Work Groups to go on-site visits to conduct Organizational Audit and HR Audit [Figure 6.9] to all existing entities of VTC. (Assist counterparts to develop business plan [including financial, procurement and human resources] for the new Financial and Human Resources Models with performance indicators). 68

69 Figure 6.9, HR Audit Process The development and validation of the Business Model (including Financial, Procurement, human resources, marketing and management will include: Description of the all the sections and units tasks and responsibilities within the Financial, Procurement, Human Resources, marketing and management and technical activities. This will include: Formulation of objectives [of the above] within the structure of VTC. Identification of responsibilities, tasks and relationship of all the department and institutes. Identification of all the job holders qualifications and skills required for each major job in each section and unit of the Technical, Financial, Procurement and Human Resources Departments. Identification of salary scales, fringe benefits, incentives and other related issues The financial and procurement rules and principles in connection with: Expenditures rules and control principles and monitoring requirements, Purchasing rules, principles and monitoring requirements, Revenues, Cash in hand and Budgeting rules and principles. The accounting and procurement policies and procedures. The accounting procedures of: purchasing, expenditures, revenues, cash in hand and at banks, fixed assets, budgeting, and financial statements. Preparation of financial statements. Reporting and reporting practices. Monitor and Evaluate plan to be developed and implemented by the work groups with set Goals and Priorities: 69