Chapter 1

CHAPTER 1
THE RESEARCH PROBLEM
Introduction
The creation of the Commission on Higher Education (CHED) was part of a
broad agenda for reforms in the country's education system as outlined by the
Congressional Commission on Education (EDCOM) in 1992. Part of the reforms is
the trifocalization of the education sector. The three governing bodies in the
education sector are the Commission on Higher Education (CHED) for tertiary and
graduate education, the Department of Education (DepEd) for basic education, and
the Technical Education and Skills Development Authority (TESDA) for technical-
vocational and middle level education.
The Technical Education and Skills Development Authority (TESDA) serves
as the Philippines' Technical Vocational Education and Training (TVET) authority. As
a government agency, TESDA is tasked to both manage and supervise the
Philippines' Technical Education and Skills Development (TESD). Its goals are to
develop the Filipino workforce with world-class competence and positive work values
and to provide quality technical-educational and skills development through its
direction, policies, and programs (http://www.tesda.gov.ph/About/TESDA/11)
The demand for a competent and globally competitive middle-level workforce
has been increasing both in the domestic and overseas labor markets. TESDA, as
the government agency mainly responsible for managing the technical-vocational
Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Telephone Numbers: +63 43 723 1446 | 980 0041
Website: www.ub.edu.ph
education and training (TVET) sector, has to ensure the availability of qualified and
competent skilled workers to meet this demand and to contribute to the economic
development of the country.
Corollary to the above premise, owners and administrators of training centers
with registered TESDA programs are now challenged to revisit their organizational
capabilities to respond to the demand for competent and globally competitive
workforce. The administrators are expected to enhance the structure of their training
centers from vision, goals and objectives, physical facilities, equipment, tools,
qualifications of trainers, assessors and administrators to meet industry demands for
skilled workers and to ensure that the program offerings of the centers are unique
thus, prevent replication by competitors. Developing and cultivating organizational
capabilities can help owners and administrators of training centers gain an
advantage in a competitive environment by focusing on the areas where they excel.
In view of the need to provide equitable access and provision of programs to
the growing TVET clients, TESDA offers the training centers modality options for the
delivery of trainings namely school-based, center-based, enterprise-based and
community-based envisioned to create opportunities for people to be responsible
and become productive citizens. School-based as a training modality is the direct
delivery or provision of TVET programs by the TESDA-administered schools which
include post-secondary offerings of varying duration not exceeding three years.
Center-based training is the provision of short duration non-formal training

undertaken in TESDA Regional and Provincial Training Centers. Enterprise- based
training is training program like apprenticeship, learnership and dual-training
program which are carried out within the firms or industries. The fourth training
modality is the community-based which is primarily designed to address the poor
and marginal groups, those who cannot access, or are not accessible by formal
training provisions. The program goes further than just mere skills training provision.
It is purposively designed to catalyzed the creation of livelihood enterprises that shall
be implemented by the trainees, immediately after the training. Likewise, it is
designed to assist partner agencies such as LGUs, NGOs, people organizations and
other agencies organizations with mission to help the poor get into productive
undertakings to help themselves and their communities.
As all training operations require financial element, training centers are given
scholarship slots to address equity and access to deserving TVET enrollees across
all regions in the country by providing direct financial assistance. As the trainees
directly benefit from the financial assistance by acquiring trainings and enhancement
of skills, this also lead to the quality training, improvement of facilities of training
centers and sustainability of operation.
The two popular scholarship programs of TESDA are Training for Work
Scholarship Program (TWSP) and Special Training for Employment Program
(STEP). TWSP is a scholarship program that provides immediate interventions to
meet the need for highly critical skills while STEP as an scholarship program

provides skills and training opportunities for the beneficiaries in communities who
receive free training and competency assessment, starter toolkits and training
allowance per day for the duration of the training.
Aside from the demand of the industry and financial support of the TESDA
through scholarship vouchers, the owners and administrators of the training centers
have to know the different variables involved in business venture and how it will be
accepted on the open market along with who will be the target clients. Business
opportunities are determined by the various factors namely; marketing strategy,
management and organization, operations and financial performance. Marketing
strategy is an important factor that serves as an overall game plan that contains the
company’s value proposition, key brand messaging, data on target trainees
demographics, and other high-level elements for reaching prospective clients and
turning them into trainees of the training center. Management and organization is of
equal value in leading a company and effectively using or controlling its assets and
resources. It also goes well beyond a corporate structure; it requires administrators,
personnel and staff to have methods in place to resolve issues and develop
solutions that help the training center move closer to its desired goals and vision.
Moreover the operation must also be given proper attention since it covers
everything that happens within a company to keep it running and earn money.
Owners of training centers should understand the systems, equipment, people, and
processes need to make the organization function. Lastly, financial performance as

the most crucial factor that measure how well a training center used all the available
assets in generating revenues. It must take big part of considerations given the fact
that it measures the results of a training center operations in monetary terms. By
collecting these data, management can then make an informed decision on which
path should be pursued in order to create the most profitable revenue stream for the
training center.
Today, there is an increasing recognition of TVET’s role in the development of
the national economy however, along with the increased appreciation, training
centers in the province of Batangas offering TESDA registered programs are
confronted with bigger and more complex challenges in the area of increasing
access to and quality of TVET. Some of the most exigent factors and concerns
TESDA has to deal with include the demand for higher level of skills and knowledge
due to advent of more modern and fast changing technology that has radically
changed the settings and environment of workshops/workplaces in many industries.
There is reactive and populist stance in development and provision of training and
education to target client. On top of these two major concerns is the comparatively
lower government budget/investment in TVET resulting to the dearth investment in
new/modern training centers for hard trades due to high capital requirement to build
and equip such training facility.
In terms of manpower, one issue training centers are facing is the constant
exodus of TVET trainers and highly skilled and experienced industry workers to

other countries offering higher pay and better incentives. As a result, the number of
trainers or program experts central to the delivery of various TVET programs
particularly in critical or priority trades is decreasing. More than decreasing the
trainers in number, the greater challenge is ensuring their quality. Indeed, this calls
for an intensive implementation of an assessment program for trainers. Relative to
partnership, interest of big industries to collaborate/open their factories to
government/TESDA proposed training arrangement/packages is becoming limited. It
is also noted that there is decreasing client base for TVIs due to integration of TVET
in secondary education (K+12) and diminishing interest of present generation in
agriculture related qualifications and career.
The persisting low regard/status of TVET in the Philippine education system
is another challenge met by administrators of training centers not only in Batangas
but nationwide as well. The bad image of the past scandal involving the Technical
Education and Skills Development Authority (TESDA) . Report on TESDA released in
2013 that highlighted a number of questionable payments to some technical
vocational institutions (TVIs) found to have overpriced tuition fees or shortened
training schedules. It was during the time when the Priority Development Assistance
Fund (PDAF), also known as pork barrel, was still in existence, and where 19
legislators were implicated in the TESDA anomalies, mainly for having supported the
questionable TVIs (https://www. philstar. com/business/201905/07/ 1915583/poor-
regard-tech-vocational-education#CP5fSfCPW03feLud.99 ). With billions of pesos

made available to TESDA in recent years, either through the national government,
the pork barrel system, or donati ons, the COA not only revealed non-compliance to
TESDA training standards, but even the presence of ghost students.
As part owner of a training center in Batangas City and a student of Doctor of
Philosophy in Business Management, the researcher is prompted to pursue this
paper to determines the status of the different training centers with TESDA
registered programs in the Province of Batanags. The end in view is to propose
business strategies to sustain their profitability.
Conceptual Framework
The Systems theory proposed in the 1940's by Ludwig von Bertalanffy is one
of the two conceptual references of this study. According to (Jackson, 2003),
systems theory is an interdisciplinary theory about every system in nature, in society
and in many scientific domains as well as a framework with which we can investigate
phenomena from a holistic approach. Systems thinking comes from the shift in
attention from the part to the whole considering the observed reality as an integrated
and interacting unicuum of phenomena where the individual properties of the single
parts become indistinct. In contrast, the relationships between the parts themselves
and the events they produce through their interaction become much more important,
with the result that system elements are rationally connected). The systemic
perspective argues that we are not able to fully comprehend a phenomenon simply
by breaking it up into elementary parts and then reforming it; we instead need to

apply a global vision to underline its functioning. Although we can start from the
analysis of the elementary components of a phenomenon, in order to fully
comprehend the phenomenon in its entirety we have to observe it also from a higher
level.
Systems theory encompasses a wide field of research with different
conceptualizations and areas of focus. Specifically, within management and
marketing, a number of authors and scholars have adopted implicitly or explicitly a
vision of organizations as systems with the aim of analyzing the relationship
between organizations and their environment (Aldrich, 1979). Review of the systems
theory guides the researcher on managerial applications of systems thinking
specifically, those that make a specific reference to management. Von Bertalaffy
(1956) defines a system as a complex of interacting elements. He fosters systems
thinking in all disciplines in order to find general principles valid to all systems. A
fundamental notion of general systems theory is its focus on interactions. The center
in relationships lead to sustain that the behavior of a single autonomous element is
different from its behavior when the element interacts with other elements.
The second of the two conceptual references of this study Mintzberg's
general theory of strategy which identifies eight ideal types along a deliberate-
emergent continuum. The planned strategies type originate in formal plans-precise
intentions exist, formulated and articulated by central leadership, backed up by
formal controls to ensure surprise-free implementation in benign, controllable, or

predictable environment. The entrepreneurial strategies originate in central vision-
intentions exist as personal, unarticulated vision of single leader, and so adaptable
to new opportunities organization under personal control of leader and located in
protected niche in environment. In this type, strategies are relatively deliberate but
can emerge. The ideological strategies which originate in shared beliefs-intentions
exist as collective vision of all actors, in inspirational form and relatively immutable,
controlled normatively through indoctrination and/or socialization organization often
proactive vis-à-vis environment
The umbrella strategies originating in constraints-leadership, in partial control
of organizational actions, define strategic boundaries or targets within which other
actors respond to own forces or to complex, perhaps also unpredictable environment
while the process strategies originate in process-leadership controls process
aspects of strategy such as hiring, structure and the like leaving content aspects to
other actors.
From the two theories, the researcher is able to conceptualize that a training
center as a system has several domains which are inter-related and must be
connected with each other for sustainable operations. Domains in the training
centers refer to the manpower qualifications, organizational capability, training
modalities and scholarships. To achieve the desired future for the organization,
monitoring and evaluation of these areas must be done on a regular interval. Doing
so will ensure that areas needing improvement are identified and appropriate plans

for enhancement are crafted for immediate implementation. On the other hand, the
general theory of strategy spoused by Mintzberg gives the idea that and
administrator or manager can opt for several actions to attain one or more of the
organization’s goals. Strategies can also give general directions for the company
and its various components to achieve a desired state in the future. However,
before an administrator or manager an strategize, he must be able to determine
factors contributing the effectiveness and efficiency of the day-to-day business
operations which include the elements of business such as marketing strategy,
management and organization, operations and financial performance. While
planning a strategy, it is essential to consider that decisions are not taken in a
vaccum and that any act taken by an organization is likely to be met by a reaction
from those affected, owners, administrators, customers and employees hence, the
assessments of these groups on the status of day-to-day business operations is of
vital importance. Strategy can also be defined as knowledge of the goals, the
uncertainty of events and the need to take into consideration the likely or actual
behavior of others. Strategy is the blueprint of decisions in an organization that
shows its objectives and goals, reduces the key policies, and plans for achieving
these goals, and defines the business the organization is to carry on, the type of
economic and human organization and the contribution it plans to make to its
shareholders, customers and society at large. The foregoing is the conceptual
paradigm of the study to be conducted by the researcher. As seen in Figure 1, the
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Profile of the
Training Centers
 manpower Triangulation
qualifications Method
 organizational
capability
 training
modalities Questionnaire
 Scholarships
Proposed
Elements of Business
Business Interview Strategies
 marketing
strategy
 management
and FGD
organization,
 operations
 financial
performance
Sustainability
Challenges 11

Figure 1
Research Paradigm
first box contains the input to be processed by the triangulation method. The input
covers the profile of the training centers in terms of manpower qualifications,
organizational capability, training modalities, the elements of business namely
marketing strategy, management and organization, operations and financial
performance and the sustainability challenges met by the administrators of TESDA
training centers. The second box contains the triangulation methods as
questionnaire, interview and Focus Group Discussion which will be used to
processed the input from box 1. The third box contains the expected output of the
study.
The one-headed arrow signifies the process to be undertaken in which the
input will be processed through the throughput (triangulation method) to come up
with the output (Business strategies to sustain the profitability of the TESDA
registered programs).
Statement of the Problem
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This study aims to propose business strategies to sustain the profitability of
TESDA registered training centers in the province of Batangas.
Specifically, it seeks answers to the following questions:
1. How may the TESDA registered training centers be described with
reference to:
1.1 manpower qualifications of administrators, trainers, assessors; and
non-teaching personnel;
1.2 organizational capability of the TESDA registered training center
administrators in terms of:
1.2.1 leadership;
1.2.2 customer connection;
1.2.3 process excellence; and
1.2.4 people engagement?
1.3 training modalities
1.3.1 center-based;
1.3.2 enterprise-based;
1.3. 3 community-based;
1.4 scholarship
1.4.1 Training for Work Scholarship (TWSP); and
1.4.2 Special Training for Employment Program (STEP)?
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2. As assessed by owners, administrators, trainers and assessors, to what
extent are the following elements of business contribute to the operations of the
training centers?
2.1 Marketing strategy;
2.2 Management and organization
2.3 Operations
2.4 Financial performance
3. Is there significant difference in the assessments by the four groups of
respondents? How significant is the difference?
4. What sustainability challenges are met by the administrators of TESDA
registered training centers?
5. Based on the analysis, what business strategies may be proposed to
sustain the profitability of TESDA registered training centers?
Hypothesis of the Study
This study will test the hypothesis that there is no significant relationship in
the assessments by the four groups of respondents.
Scope, Delimitation and Limitation of the Study
The study covers the profile of TESDA registered training centers with
reference to manpower qualifications of administrators, trainers, assessors; and non-
teaching personnel, the organizational capability of the TESDA registered training
center administrators in terms of leadership, customer connection, process
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excellence and people engagement, the training modalities classified as center-
based, enterprise-based, and community-based, the scholarship programs
categorized as Training for Work Scholarship (TWSP) and Special Training for
Employment Program (STEP). In addition, it comprises the elements of business that
contribute to the operations of the training centers namely: marketing strategy,
management and organization, operations and financial performance. Part of the
study also are the sustainability challenges met by the administrators of TESDA
registered training centers. The output of the study is the proposed business
strategies to sustain the profitability of TESDA registered training centers in the
province of Batangas.
The study is delimited to only four elements of business as its coverage and
considers only the training centers located in the Province of Batangas. One
limitation of the study is it uses only researcher-made questionnaire, interview and
FGD and did not employ documentary analysis as instrument in data gathering.
Significance of the Study
This study may benefit the, the owners and administrators of training centers,
trainors, assessors, trainees and the industry employing the graduates of TESDA
training centers.
This study is considered significant to owners of training centers because of
its capacity to generate needed information for effective and appropriate use of
strategies to sustain profitability.
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The findings of the study will serve as basis for administrators of training to
enhance the currently existing practices pertaining to the management of training
centers offering TESDA registered programs. They may also be given the
opportunity to revisit the structure of their organizations to identify possible areas for
improvement and strengthen further the good points of the structure.
To the trainers and assessors, the identification of their practices and
perceptions on the contribution of business elements in the operation of the training
center may shed light on their problems and needs and how these could be met.
Further, their awareness will be enhanced and they shall be more guided in the
performance of their assigned tasks.
The trainees, being the key players may be benefited in such a way that the
proposed strategies may direct the school administrators efforts towards the
improvement of their learning experiences.
For other researchers, result that this study may reveal may help them to
widen their understanding about management of business particularly training
centers for the improvement and completion of their work. More so, in developing a
research related to the present study.
Definition of Terms
For better understanding of the study, the following terms are lexically and
operationally defined.
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Business strategies. The term refers to the combination of all the decisions
taken and actions performed by the business to accomplish the business
goals and to secure a competitive position in the market. It is the backbone of
the business as it is the roadmap which leads to the desired goals. Any fault
in this roadmap can result in the business getting lost in the crowd of
overwhelming competitors. (www.feedough.com/business-strategy-definition-
levels-examples).
Center-based training. These are training provisions or programs that are
being offered under selected trade areas in TESDA Regional and Provincial Centers
throughout the country. (Technical Education and Skills Development Authority.
Retrieved July 12, 2017).
Community-based training. This term means the TESDA programs, which are
primarily offered to those belonging to marginalized groups. These are intended to
expand educational access to those who are unable to access, or are not
accessible, by formal training provisions and programs. The program is also
designed to assist partner agencies such as LGUs, NGOs, people organizations and
other agencies and organizations with regard to their poverty-alleviation and
livelihood programs. (Technical Education and Skills Development Authority.
Retrieved July 12, 2017).
17

Customer connection. The term refers to a program by which key members of
a client company, such as the marketing team, spend time directly with consumers
or other people representing the client's existing or target customers.
(www.aqr.org.uk/glossary/consumer-connection-programme). As used in this study,
customer connection is an organizational capability vital for a training center to
maintain its smooth operation.
Enterprise-based training. Enterprise-based programs are training programs
that are being implemented within companies or firms. (Technical Education and
Skills Development Authority. Retrieved July 12, 2017).
Financial performance. It means subjective measure of how well a firm can
use assets from its primary mode of business and generate revenues. The term is
also used as a general measure of a firm's overall financial health over a given
period. (www.investopedia.com/terms/f/financialperformance.asp.) As used in this
study, customer connection is one of the business elements necessary to pursue
efficient operations of the training centers.
Leadership. Leadership is the art of motivating a group of people to act
towards achieving a common goal. In a business setting, this can mean
directing workers and colleagues with a strategy to meet the company's
needs. (www.thebalancesmb.com/leadership-definition-2948275). As used in
this study, leadership is an organizational capability vital for a training center to
maintain its smooth operation.

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Management and organization. These are processes of leading a company
and effectively using or controlling its assets and resources. Organizational
management goes well beyond a corporate structure; it requires leaders to have
methods in place to resolve issues and develop solutions that help the business
move closer to its desired goals and vision. (mallbusiness.chron.com/definition-
organizational-management-37684.html)
Marketing strategy. A marketing strategy is a written plan that
includes marketing topics like product development, promotion, distribution and
pricing approach; identifies you company's marketing goals; and explains how you
will achieve those goals. (bizfluent.com/info-8116652-meaning-marketing-
strategy.html)
Operations. The term operations in management is the administration of
business practices to create the highest level of efficiency possible within an
organization. It is concerned with converting materials and labor into goods and
services as efficiently as possible to maximize the profit of an organization.
(www.investopedia.com/terms/o/operations-management.asp)
Organizational capability. The terms refers to anything an organization does
well that improves business and differentiates the business in the market.
https://smallbusiness.chron.com/importance-organizational-capability-13295.html.
As used in this study, organizational capabilities are leadership, customer
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connection, process excellence and people engagement abilities administrators must
possess to sustain the effective and efficient operations of the training centers.
People engagement. Employee engagement is the extent to which
employees feel passionate about their jobs, are committed to the organization, and
put discretionary effort into their work. (www.custominsight.com/employee-
engagement-survey/what-is-employee-engagement.asp). As used in this study
people management is the training centers’ organizational capability to ensure that it
will produce the desired workforce needed by the industry.
Process excellence. The term is about process effectiveness and efficiency. It
requires processes to be designed and improved for consistent delivery with
minimum variation and minimum waste. (www.processexcellencenetwork.com/what-
is-process-excellence)
Profitability. Profitability is ability of a company to use its resources to
generate revenues in excess of its expenses. In other words, this is a company’s
capability of generating profits from its operations. (www. myaccountingcourse.com/
accounting-dictionary/profitability). As used in this study profitability means
measurement of efficiency – and ultimately its success or failure. It is the
training center’s ability to produce a return on an investment based on its
resources.
Scholarship Programs. In this study, the term means programs created to
give help and financial assistance to deserving TVET enrollees and trainees in the
20

country such as Special Training for Employment Program and Training for
Work Scholarship.
School-Based Program. In this study, the term means programs that are
directly delivered or provided by TESDA-administered schools .
Special Training for Employment Program (STEP) is a type of scholarship
that focuses on the specific skills needed by the communities in order to promote
employment. This tackles self-employment and service-oriented activities to be more
specific (Scholarship and Student Assistance Programs. TESDA Retrieved July
12, 2017).
As used in this study, the term denotes a scholarship program with an
objective to provide skills and training opportunities not only to enhance the trainees
in the barangay area but to also make the trainees more adept and keen of their
skills needed to be ready for the job. Those who are a part of this program receive
free training, competency assessments, tool kits and training allowance worth sixty
pesos per day during the training period.
. Sustainability. Sustainability is a strategy that prioritizes the long term survival
of a business and connected ecological, social and cultural systems. It is the
capacity of a business to endure. (business.simplicable.com/business/new/what-is-
business-sustainability). As used in this study, the term means business approach to
create long-term value by taking into consideration how a training center operates in
21

the ecological, social and economic environment on the assumption that developing
such strategies foster the training center’s longevity.
Training for Work Scholarship (TWSP). The term means a scholarship
program which aims to give out solutions to the where the lack in skills in sectors
that relate with one another such as metals and engineering, along with
construction, tourism many more (Scholarship and Student Assistance Programs.
TESDA Retrieved July 12, 2017). In this study, the term means a scholarship
program that reinforces TVET institutions through incentives and proper training
programs in making the quality of their delivery better in order to meet the
requirements of a certain job.
Training modalities. As used in this study, training modalities are the different
forms of deliveries employed by trainers in training centers with TESDA registered
programs such as center-based, enterprise-based and community-based trainings.
CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents various literatures and studies that have bearing to the
present study. Discussion on Technical Education and Skills Development Authority
(TESDA) Training Centers, Business Elements and Its Role in Training Center
Operations, Sustainability Challenges Among TESDA Training Centers and
Business Strategies are presented. The reviewed studies were conducted by foreign
22

and local researchers which the writer considers relevant to the proposed
investigation.
Related Literature
This portion contains reviewed literature on Technical Education and Skills
Development Authority (TESDA),
Technical Education and Skills Development Authority (TESDA) Training
Centers. The education system in the Philippines embraces formal and non-formal
education. It is closely related to the American mode of education, which has 12
years basic education. The levels of education namely; elementary, secondary and
tertiary levels comprise the formal education. However, non-formal education
includes education opportunities, even outside school premises, that facilitate
achievement of specific learning objectives for particular clienteles, especially the
out of-school youths or adult illiterates who cannot avail of formal education.
Examples of this are TESDA programs for non-literate and semi-literate adults,
which integrate basic literacy with livelihood skills training.
The Technical Education and Skills Development Authority (TESDA) serves
as the Philippines' Technical Vocational Education and Training (TVET) authority. As
a government agency, TESDA is tasked to both manage and supervise the
Philippines' Technical Education and Skills Development (TESD). Its goals are to
develop the Filipino workforce with world-class competence and positive work values
and to provide quality technical-educational and skills development through its
23

direction, policies, and programs conducted and delivered by various public and
private training centers.
TESDA training centers and other private Technical Vocational Institutions
are given the responsibility to conduct training for programs registered under
(UTPRAS) which primarily focus on job-specific training to students who are
typically bound for one of the skilled trades rather than providing academic training
for students pursuing careers in a professional discipline.
Business Elements and Its Role in Training Center Operations. Each training
center as individual business entity that operates separately, the organizational
capability should be ensured to sustain the operation and drives meaningful
business results. The skills and knowledge of a company's workforce allow the
organization to direct those skills to achieve the business's goals. Leadership,
customer connection, process excellence and people engagement are
organizational capabilities that ensure a capable workforce. To maintain the
capability, organization should ensure the workforce has the resources available to
improve continuously. Managing a talented workforce is an organizational capability
that provides a competitive advantage in the marketplace.
In business like managing TESDA training center, leadership is linked to
performance and any leadership has to consider that. It is not solely about profit,
those who are viewed as effective leaders are those who increase their company's
bottom lines. If an individual in a leadership role does not meet profit expectations
24

set by boards, the higher management or shareholders may terminate the
concerned leader. To be effective, a leader certainly has to manage the resources at
her disposal. Leadership also involves communicating, inspiring and supervising -
just to name three more of the primary skills a leader has to have to be successful.
Leaders listen to the clients needs and unique issues, design, implement, track, and
refine each element to harness the maximum possible result and establish good
customer connection.
To ensure the continued growth and competitiveness of the training center in
the market, good customer relationship between the organization and its trainees
shall be taken into considerations. This is an organizational capability that affects
revenues, reputation and loyalty of trainees for future business. Maintaining existing
relationships with customers as well as developing new ones ensures the company
will grow and thrive in the future. A lean manufacturing environment is a capability
that focuses on the voice of the customer and meeting demand. This improves the
relationship with the customer for the business.
However, maintaining good customer relationship entails effectiveness and
efficiency. It requires processes to be designed and improved for consistent delivery
with minimum variation and minimum waste. Process excellence consists of having
simple, fast, repeatable and error-proof business processes that would strengthen
the trust of the clientele. All employees are expected to deliver consistent process to
achieve the desired goals.
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Employee engagement drives performance. Engaged employees look at the
whole of the company and understand their purpose, where, and how they fit in.
Organizations with an engaged workforce outperform their competition. They have a
higher earning per share (EPS) and recover more quickly after recessions and
financial setbacks. Engagement is a key differentiator when it comes to growth and
innovation. A company that has an effective employee engagement strategy and a
highly engaged workforce is more likely to retain top performers as well as attract
new talent. Successful organizations are value-driven with employee-centric
cultures. Aside from the organizational capabilities, TESDA provides direct training
programs, which are divided into four distinct training modalities: School-Based
Programs, Center-Based Programs, Community-Based Programs, and Enterprise-
Based Programs.
School-based programs are TVET programs that are directly delivered or
provided by TESDA-administered schools. Currently, there are 57 TESDA-
administered schools, 19 of which are agriculture schools, 7 are fishery schools and
31 are trade schools. School based programs include post-secondary offerings of
varying duration not exceeding three years. There are training provisions or
programs that are being offered in TESDA Regional and Provincial Centers
throughout the country. There are fifteen (15) Regional Centers and forty-five (45)
provincial centers, adding up to a total of 60 centers that provide center-based
programs. Such programs are offered under selected trade areas in the different
26

regions and provinces of the country. Moreover, Enterprise-based programs are
training programs that are being implemented within companies or firms. Lastly,
TESDA also provides community-based programs, which are primarily offered to
those belonging to marginalized groups. These are intended to expand educational
access to those who are unable to access, or are not accessible, by formal training
provisions and programs. The program is also designed to assist partner agencies
such as LGUs, NGOs, people organizations and other agencies and organizations
with regard to their poverty-alleviation and livelihood programs.
To extend financial assistance to marginalized but deserving students in post-
secondary non-degree courses; TESDA provide scholarship programs namely
Training for Work Scholarship (TWSP) and Special Training for Employment
Program (STEP) which also aim to contribute to the development of a competent
skilled workforce and assist private institutions in their development efforts by
assuring a steady supply of enrollees to their course offerings.
Training for Work Scholarship (TWSP) Launched in May 2006 by the Office of
the President, the Training For Work Scholarship (TWSP) aims to give out solutions
to the where the lack in skills in sectors that relate with one another such as metals
and engineering, along with construction, tourism many more. Beginning in 2008 as
a part of the regular budget, this program also looks to give out more opportunities
for employees through incentives and proper training programs that link both jobs
internationally and domestically.
27

On the other hand, Special Training for Employment Program (STEP) plans
to focus on the specific skills needed by the communities in order to promote
employment. This tackles self-employment and service-oriented activities to be more
specific. In this program, the objective is to provide skills and training opportunities to
not only enhance the enrolees in the barangay area but to also make the enrolees
more adept and keen of their skills needed to be ready for the job. Those who are a
part of this program receive free training, competency assessments, tool kits and
training allowance worth sixty pesos per day during the training period.
Along with the assurance of steady supply of trainees brought by the scholarship
voucher and grants by TESDA, training centers shall also ensure that various factors
are given proper implementation. Business opportunities are determined by the
various factors namely; marketing strategy, management and organization,
operations and financial performance. Marketing strategy is an important factor that
serves as an overall game plan that contains the company’s value proposition, key
brand messaging, data on target trainees demographics, and other high-level
elements for reaching prospective clients and turning them into trainees of the
training center. Management and organization is of equal value in leading a
company and effectively using or controlling its assets and resources. It also goes
well beyond a corporate structure; it requires administrators, personnel and staff to
have methods in place to resolve issues and develop solutions that help the training
center move closer to its desired goals and vision. Moreover the operation must also
28

be given proper attention since it covers everything that happens within a company
to keep it running and earn money. Owners of training centers should understand
the systems, equipment, people, and processes need to make the organization
function. Lastly, financial performance as the most crucial factor that measure how
well a training center used all the available assets in generating revenues. It must
take big part of considerations given the fact that it measures the results of a
training center operations in monetary terms. By collecting these data, management
can then make an informed decision on which path should be pursued in order to
create the most profitable revenue stream for the training center.
Sustainability Challenges Among TESDA Training Centers. With the
increasing recognition of TVET’s role in the development of the national economy,
the major challenges confronting TVET are in the area of increasing access to and
quality of TVET. There is the need to expand the pool of experts particularly in
critical or priority trades. More than increasing the trainers in number, the greater
challenge is ensuring their quality.
The other major challenge is expanding the capacity of private TVET
institutions through scholarships. It makes the TVET system highly accessible to
poor but deserving Filipinos who require and need economic empowerment through
the acquisition of competitive competencies that meet job requirements. In response
to this challenge, the existing scholarship programs of TESDA are being expanded
29

by pursuing partnership especially through financial sharing scheme with national
and local officials.
The rapid pace of globalization pressures nations to be competitive in order to
survive. This ushers the freer permeability of human resources among countries.
While it poses as a huge challenge to the survival of Filipino workforce in the global
market, it yields various opportunities. This challenge pushes for the continuing
development and replenishment of manpower in order to ensure that there are
workers of the right quality and right quantity for jobs that are made available at any
given instance. Further, it urges for a stronger labor market intelligence and
technology development. Lastly, it encourages transformation of the Filipino
workforce to be knowledge-based and adaptable to shifting skills or even
occupations.
In pursuits of relevant, accessible, equal and cost efficient TVET, TESDA will
gear up to raise the capacity of TVET by being more innovative in managing its
resources and tapping more partners that could augment the limited resources, and
satisfy the demands of the industries in terms of skills and competency requirements
by sharpening labor market intelligence and subsequently use the updated labor
market information in developing and re-engineering training programs.
The search for competitive advantage is an ongoing quest for companies in
the industries. As new technologies continue to develop at a lightning fast rate, and
efficiencies are gained in all areas of production, one relatively new endeavor is
30

becoming increasingly important: companies around the world are looking for ways
to become more sustainable.
In recent years, sustainability has become a popular topic as business
leaders face hardships with the poor economy. In fact, sustainability strategies have
been growing in popularity over the past several decades. Young and Tilley (2006)
describe in a recent article that the 1980’s and 1990’s were decades of eco-
awareness following the pollution aware decades of the 1960’s and 1970’s. Now, as
companies face increasing problems in trying to achieve profitability, managers are
looking for ways to decrease costs while still maintaining quality products and
services. Managers are looking for ways to survive. However, mere survival skills
will not give a company much hope for the future. This is where the concept of
sustainability becomes important.
It is important that sustainability concepts are able to produce visible results
for the companies that implement them. Without visible results, it is likely that
companies will choose not to pursue these strategies. However, researchers have
been able to identify ways to ensure success through sustainability. It has been
found that a competitive advantage can be accomplished through a balance
between economic progress, social responsibility, and environmental protection
(Epstein, 2008). With this formula for competitive advantage, more companies will
be willing to implement sustainability concepts.
31

With the growing popularity of sustainability, it is not surprising that the trend
is also growing in popularity among entrepreneurs. According to Gibbs (2009) in his
recent article, sustainability entrepreneurs are a new breed of entrepreneur that work
to combine the social, economic, and environmental aspects of sustainability. These
business owners are leading the trend towards successful sustainability. Using the
three valuable components of the formula for competitive advantage that were
defined by Gibbs (2009), these entrepreneurs are starting their companies from the
ground up in a way that produces an immediate advantage in their respective
industries.
Sustainability entrepreneurs have an alternative approach to doing business
that also assists them in building their advantage. In common practice, the primary
strategy of businesses is to do whatever it takes to earn a profit. While profit is key to
the success of any business, it is not the primary concern of the sustainability
entrepreneur. Instead, these business owners focus on environmental health and
social concerns (Gibbs, 2009). These owners are more likely than the traditional
entrepreneurs to focus on reducing their companies’ carbon footprint and keeping
their employees happy.
It is common knowledge that employee happiness is essential to the long-
term viability of a company. However, it is difficult to imagine a company finding
long-term success using a strategy that places social concerns above all else. A
recent article by Gundlach and Zivnuska (2010) addresses the topic of sustainability
32

entrepreneurs from the standpoint of the differences in business education required
for sustainability entrepreneurs versus traditional entrepreneurs. In the article, the
authors point out that curriculum must be changed to suit the drive and passion of
these social entrepreneurs who often will not accept the traditional concepts
(Gundlach and Zivnuska, 2010).
Sustainability entrepreneurs, by definition, show a concern for society, the
economy, and the environment. However, another group of entrepreneurs is known
for their ability to combine an environmental focus with their for-profit business.
These entrepreneurs have been named ecopreneurs (Gibbs, 2009). Ecopreneurs,
by definition, are entrepreneurs who combine their business activities with an
environmental awareness in order to shift the basis of economic development
towards a more environmentally friendly basis (Gibbs, 2009). These ecopreneurs
are at the forefront of leading the way towards going green. Sustainability is a good
choice for companies, the environment, and society. These strategies have
numerous benefits for everyone.
However, sustainability strategies may not be feasible for a number of
companies. Small and medium sized companies face a number of challenges at
start-up and throughout the life of the company. These challenges include barriers to
entry, high operating costs, and small customer base. All of the challenges affect a
company’s ability to spend money. With tight budgets, it can be difficult to convince
33

managers to pursue an often costly move towards an environmental focus or social
concern strategy.
Starting a Training Center can be challenging. When a group of
administrators decides to open a training center they need to make sure that their
decision is based on sound data and that they have a reasonable understanding of
the costs and strategies needed to successfully open their training center. In today’s
complicated market, the need to work smarter and be ready for opening day is
critical. There is never a second chance to make a first impression. With proper
planning, financial sustainability can be assured.
Business Strategies. In business, strategies is the long-range sketch of the
desired image, direction and destination of the organization. It is a scheme of
corporate intent and action, which is carefully planned and flexibly designed with the
purpose of achieving effectiveness, perceiving and utilizing opportunities, mobilizing
resources, securing an advantageous position, meeting challenges and threats,
directing efforts and behaviour and gaining command over the situation.
It is nothing but a master plan that the management of a company
implements to secure a competitive position in the market, carry on its operations,
please customers and achieve the desired ends of the business.
A business strategy is a set of competitive moves and actions that a business
uses to attract customers, compete successfully, strengthening performance, and
achieve organisational goals. It outlines how business should be carried out to reach
34

the desired ends. Business strategies equip the top management with an integrated
framework, to discover, analyze and exploit beneficial opportunities, to sense and
meet potential threats, to make optimum use of resources and strengths, to
counterbalance weakness.
Levels of Business Strategies are identified to set the boundaries and
responsibilities of all levels namely, corporate, business, and functional. Corporate
level strategy is long-range, action-oriented, integrated and comprehensive plan
formulated by the top management. It is used to ascertain business lines, expansion
and growth, takeovers and mergers, diversification, integration, new areas for
investment and divestment and so forth. Business level strategy on the other hand is
developed by the general managers, who convert mission and vision into concrete
strategies. It is like a blueprint of the entire business. Lastly, the functional level is
developed by the first line managers or supervisors, functional level strategy
involves decision making at the operational level concerning particular functional
areas like marketing, production, human resource, research and development,
finance and so on.
In business, there is always a need for multiple strategies at various levels as
a single strategy is not only inadequate but improper too. Therefore, a typical
business structure always possesses three levels.
35

Related Studies
This portion contains reviewed literature on Technical Education and Skills
Development Authority (TESDA),
Pacio (2016) Impact Evaluation Study, TESDA produced 1,606,622 TVET
graduates in 2016, dominated by females. The largest portion of the TVET
graduates came from Region IV-A. On the average, a TVET graduate is 28.49 years
old with a standard deviation of 11.2 years. The potential TVET clientele are mainly
high school graduates in which about 42% were high school graduates (old
curriculum) before taking TVET programs. The largest proportion of the TVET
graduates (55.92%) was produced by institution-based mode of training, followed by
the community-based mode of training (39.2%). Among the 2016 TVET graduates,
508,314 were recipients of a certain scholarship. This makes up 32% of the
population, in which around half were scholars of Training for Work Scholarship
Program (TWSP). TVET programs in Tourism sector were the most popular among
graduates in 2016, registering the highest number of graduates (22.75%), dominated
by females.
Many of the graduates (57%) were produced by WTR programs, while 7%
were graduates from programs with No Training Regulations (NTR). Among the
WTR graduates, about 78% took the assessment. There were WTR graduates who
did not take the assessment because they believed it was not mandatory (21.65%);
36

there was lack of time due to work, school or being abroad (18.96%); the
assessment tools/test package were not available (17.5%); and due to financial
constraints (9.2%). WTR graduates who took the assessment attained a passing
rate of 94.22% and most of them were given certificate of competency for National
Certificate (NC) Level II.
Quimba (2017) Study on the Employability of TVET Graduates, the labor
force participation rate (LFPR) of 2016 TVET graduates is found to be at 62.2%, in
which 72% were employed during the time of the survey. More male graduates
(72.23%) than females (63.59%) were reported working at the time of the survey.
The highest employment rate was recorded in Region XI. Moreover, those under
TTIs registered a higher employment rate than those non-TTIs. The dual training
system accounted the highest employment rate at 88.93%, which is considerably
higher than the other training modes. On the average, it took for a graduate 2.85
months before getting a job, with deviation of 2.96 months.
Statistical comparison revealed no significant difference in the employment
rate among different training delivery modes at 5% level of significance. The
employment rate of graduates from ARMM is recorded as the lowest, but not
significantly different to that of in Regions VIII, IX, and XII. Whereas, employment
rate recorded in Region XI was significantly higher than the other 16 regions.
37

Employment rate across different occupational groups was also not significantly
different. Moreover, employment rate was not significantly different from the rates
gained by Decorative Crafts, Furniture and Fixtures, and Logistic. Employment rate
of graduates from TTI was found to be significantly higher than non-TTI. Conversely,
employment rate of certified graduates was not significantly different from non-
certified graduates. The same result is noted in the comparison of employment rate
across scholarship programs.
Based on the findings, although majority of the graduates were employed at
the time of the survey, still a considerable number of graduates (of about 28%) were
not yet employed, not meeting the target that all graduates will be employed after
attending a program. Regions and programs with a large portion of unemployed
graduates shall be taken into consideration. Enhancing the job bridging program of
the government is suggested. Also, as the implication of the many graduates opting
not to take the competency assessment specifically for WTR programs, it is
recommended that the mandatory assessment policy be reviewed for a more
effective implementation of the said policy. Moreover, there were graduates who
were not satisfied with the program attended because they felt that they did not
possess the skills they were expecting to gain in attending the TESDA program.
Hence, it is recommended that programs be reviewed in accordance to the demand
of the industry, especially the dual training system for WTR programs and the
enterprise-based for NTR programs.
38

Characterizing the employed graduates, it can be said that a quarter of them
were hired as service and sales workers. Majority of the employed graduates during
the survey were from institution-based training delivery mode. A large portion
(75.77%) of employed graduates is classified as wage and salary workers. Many of
the employed graduates were from the Tourism sector (Hotel and Restaurant) with
20.77%, followed by electrical and electronics sector with 12.22%. About 51% of the
employed graduates were already permanent in their jobs or businesses. Majority
(81.82%) of the graduates, half of which were females, chose to work within their
province.
It is estimated that 831,352 (91.33%) of the graduates have already been
given a certification as a recognition for meeting the standard competency in the
knowledge and skills required in a certain sector, of which 74% were working at the
time of the survey. In both male and female certified graduates, TTIs had a higher
employment rate than non-TTIs. Majority (93%) of the wage and salary workers
were already given certification for meeting the competency standards. Also,
majority of the own account workers (91.69%) and those involved in the unpaid
family work (95.76%) were already certified graduates. Likewise, most of the
graduates in different occupational groups took and passed the competency
assessment. Alternatively, the highest percentage of employed graduates who were
not yet passers of the assessment were the skilled agricultural, forestry and fishery
39

workers. Most employed graduates were competency assessment passers, in which
the highest employment rate was recorded for those working for different employers
on a day-to-day or week-to-week basis. It was also found that many skilled TVET
clients are given incentive by their employers, in the form of salary increase, to
enhance their skills and productivity.
Cabautan (2014) Cost Benefit Study on Dual Training System, only about
32% of the TVET graduates availed a scholarship while enrolled in a training
program, in which around 76% were employed. STEP scholars accounted for the
highest employment rate at 77.62%, slightly outnumbering other scholarship
programs. Majority of the graduates from many of the different sectors funded by
the TWSP program were actively working during the survey.
Males, on the average, earned ₱11,323.06 monthly, while females earned
₱10,869.89. Moreover, graduates from non-TTI earned higher (₱11,129.23) than TTI
(₱10,377.85), on the average. Higher monthly income was recorded for (1) Maritime
with ₱20,822.78, (2) TVET with ₱19,411.28, (3) Language with ₱17,933.67, and (4)
Information and Communication Technology with ₱ 14,629.03.
Majority of the graduates from all the training delivery modes thought that the
trainings gave them the skills expected for them to gain. However, it is still important
to note that there were graduates, though very few, who felt that attending the
40

training did not help them level up their skills. Overall, majority of the graduates were
satisfied with the trainings they attended at TESDA.
Many of the graduates got their job through referrals (34.28%) and walk-in
applications (31.95). Among the employed graduates, only 40% deemed the skills
that they gained from the attended programs as very useful in their current jobs.
Statistical analysis for association found that educational attainment, age
group and region of a graduate were moderately associated with a graduate’s
employability, while the type of provider, availing of a scholarship program, took
competency, took YP4SC or not, level of certification, perception, satisfaction of
training attended, were weakly associated with one’s employability. Furthermore,
logistic regression analysis revealed that type of provider, perception whether or not
the graduates possess the skills after completing the program and age group can be
considered as determinant of the likelihood for a graduate to be employed. A higher
employment rate was recorded for those who affirmed that they gained skills from
the training than those who did not. Also, a graduate aged 25-34, 35-44, 45-54; and
55-64 is 1.5 times, 1.6 times, twice, and thrice, respectively, more likely to be
employed than a graduate aged 15-24 years. Conversely, the odds of a TVET
graduate to be employed is reduced to about 21.6% if one is from non-TTIs.
Chaleunsouk, T. (2017) cited on the study of business strategies applied by
entrepreneurs, today’s competitive business environment is unstable and continues
41

to change, so business owners are facing great challenges in designing suitable
business plans, particularly in developing countries where there are few studies and
limited knowledge on business analysis and organisational strategies. Organisations
need effective business strategies so that they can compete and succeed. In
addition, to understand business environment, it is important for entrepreneurs and
top managers to analyse the business environment in which their firms are
surrounded in order to make effective business plans and suitable strategies. As
Laos is a small and developing country which SMEs are the back bone of the
national economy, it is vital to apply business environment analysis and business
strategies to enhance business performance and gain competitive advantages.
Based on the findings, it was found that although the majority of the hotel
entrepreneurs were familiar and use business analysis tools, more than half of them
did not apply PESTLE and Porter’s Five Forces in their hotel businesses. Besides,
the main difficulties of hotel SMEs to apply business analysis tools were a lack of
concern about organizational plans, inadequate human resources and limited
access to analytical information.
Yong Zeng et.al (2017) Organizational Capability Model: Toward Improving
Organizational Performance. Organizational capability is of particular importance to
organizational performance. Existing research in the literature identified a wide
range of factors that would contribute to organizational capability. The study develop
an organizational capability model based on a model of individual capability.
42

Organizational knowledge, skills and emotion are identified as the three elements
determining the organizational capability. In the proposed model, organization is
abstracted as a work-centric construct highlighting work, goal and people as the
contextual factors influencing emergence of the organizational elements. These
elements are explained in details focusing on their characteristics as organizational
phenomena. Finally, it is briefly discussed how the proposed organizational
capability model can be used for effective organization management.
Synthesis:
CHAPTER 3
RESEARCH METHODOLOGY
This chapter presents the research design of this study. This serves as the
roadmap towards the completion of the paper. It discusses what methods were used
in collecting and analyzing the data gathered. In particular, this part presents the
43

procedures in conducting and gathering the essential information for further
assessment, synthesis, and final interpretation.
Research Design
The researcher tends to use triangulation method in this paper to achieve
accurate results. Triangulation is a powerful technique that facilitates validation of
data through cross verification from more than two sources. In particular, it refers to
the application and combination of several research methodologies in the study of
the same phenomenon. It can be employed in both quantitative (validation) and
qualitative (inquiry) studies. It is a method-appropriate strategy of founding the
credibility of qualitative analyses. It becomes an alternative to traditional criteria like
reliability and validity. It is the preferred line in the social sciences.
Respondents
The respondents of this study will be the one hundred and eighty (160) out of
the total population of five hundred and twenty (520) owners, administrators, trainers
and assessors province wide. The respondents represent the ________training
centers in the province of Batangas.
The distribution of the respondents will be 40 per group of respondents
selection be done through random sampling.
Research Instrument
There are several data collection instruments to be used in the research
namely: questionnaire, interview and focus group discussion.
44

Questionnaire. The instrument that the researcher will use in gathering the
desired information for the study is the checklist questionnaire which will be
patterned according to the problems stated in the study. The questions are made in
details to obtain valid and reliable results. The researcher intentionally makes the
responses easy but significant to the study so that respondents would not mind
sharing a little of their time and so as not to consume extra effort and energy. As the
prime method of collecting data. The researcher will use sets of items in which the
respondents are usually asked to rate the importance of a particular issue, on a
rating scale of 1-4. A four-point numerical scale with 4 as the highest or Very High
Extent and 1 as the lowest or Very Low Extent will be used to ascertain the extent
four identified business elements contribute to the day-to-day operations of the
training centers.
The questionnaire will be divided into four parts: Part 1 will be the the profile
of the TESDA registered training centers in terms of manpower qualifications. Part 2
will be the organizational capability of the TESDA registered training center
administrators in terms of leadership, customer connection, process excellence and
people engagement. The third part of the questionnaire will be the training modalities
of programs registered under TESDA and the scholarships provided by the agency
to trainees of different trades. The last part of the questionnaire will be the four
elements of business which contribute to the operations of the training centers
45

namely: marketing strategy, management and organization, operations and financial
performance
The first draft of the questionnaire will be shown to the adviser for comment.
Suggestions on the format and content were incorporated for the second draft. The
second draft will be shown to the Provincial TESDA Director for validation. The pre-
survey will be conducted to determine the reliability and validity of the questionnaire
Interview. Another source of data will be through interview. A formal meeting
in selected person, specifically arranged for the assessment or evaluation of some
facts needed in this paper will be done by the researcher. Data that cannot be
provided by questionnaire can be acquired through this instrument with interview
guide carefully written. In order to facilitate a more productive interview, a guide or
schedule will be carefully prepared. Open-as well as close-ended questions relative
to the study will also considered.
Focus Group Discussion. Series of focus group discussion will be conducted
in an informal manner on the sustainability challenges met by owners and
administrators. One on one interview will be implemented by the researcher to come
up with sincere and uninhibited answers from the respondents. Sustainability
challenges met by administrators of TESDA registered training centers will be
revealed through the effective interview techniques to be done in this paper.
Recorded transcripts will likewise be considered. Like in the interview, FGD guide or
schedule will be carefully prepared to facilitate more productive exchange of
46

information. The researcher will take notes on the proceedings of the discussion.
This method is hoped to be effective since the participants will exchange views on
matters being discussed. These will serve as input to the study.
Data Gathering Procedure
A letter of endorsement will be requested from the Dean of the Graduate
School of University of Batangas. Then permission to sample out respondents and
conduct the study and to gather the necessary data from all the respondents will be
requested from the authorities. The approved request will be presented to the duly
identified respondents to whom the questionnaires will be distributed. After which,
questionnaires will be retrieve, tallied, analyzed and interpreted. For the interview
and FGD, the notes on the proceedings of the discussion will be transcribed by the
researcher.
Statistical Treatment of Data
The empirical data collected will be treated statistically using most appropriate
statistical methods. Descriptive statistics such as weighted mean, standard
deviation, frequency and percentage will be employed to analyze and interpret the
data to be gathered.
Weighted mean. Measured the typicality of the data and the standard
deviation will give a description on the variability or dispersion of the responses.
Scale Scale Range Verbal Interpretation
4 3.50 - 4.00 Most Extensive
47

3 2.50 – 3.49 More Extensive
2 1.50 – 2.49 Less Extensive
1 1.00 – 1.49 Not Extensive
Frequency. This was used to determine the number of respondents for a
certain questions or items.
48

PROPOSED OUTPUT
PROPOSED BUSINESS STRATEGIES TO SUSTAIN THE PROFITABILITY OF

THE TRAINING CENTERS WITH PROGRAMS REGISTERED UNDER TESDA
Key Result Area Performance Strategies Success

Indicators Parameters
Manpower
Qualifications
Organizational
Capabilities
Leadership
Customer
connection
 Process
excellence
 People
engagement
Business Elements
 Marketing
strategy
 Management
and
organization
 Operations
 Financial
performance
49


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CHAPTER 1

THE RESEARCH PROBLEM

The creation of the Commission on Higher Education (CHED) was part of a

Congressional Commission on Education (EDCOM) in 1992. Part of the reforms is

vocational and middle level education.

The Technical Education and Skills Development Authority (TESDA) serves

as the Philippines' Technical Vocational Education and Training (TVET) authority. As

a government agency, TESDA is tasked to both manage and supervise the

and to provide quality technical-educational and skills development through its

direction, policies, and programs (http://www.tesda.gov.ph/About/TESDA/11)

The demand for a competent and globally competitive middle-level workforce

the government agency mainly responsible for managing the technical-vocational

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

development of the country.

Corollary to the above premise, owners and administrators of training centers

capabilities to respond to the demand for competent and globally competitive

qualifications of trainers, assessors and administrators to meet industry demands for

thus, prevent replication by competitors. Developing and cultivating organizational

capabilities can help owners and administrators of training centers gain an

advantage in a competitive environment by focusing on the areas where they excel.

In view of the need to provide equitable access and provision of programs to

delivery of trainings namely school-based, center-based, enterprise-based and

community-based envisioned to create opportunities for people to be responsible

and become productive citizens. School-based as a training modality is the direct

delivery or provision of TVET programs by the TESDA-administered schools which

include post-secondary offerings of varying duration not exceeding three years.

Center-based training is the provision of short duration non-formal training

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

training is training program like apprenticeship, learnership and dual-training

modality is the community-based which is primarily designed to address the poor

It is purposively designed to catalyzed the creation of livelihood enterprises that shall

be implemented by the trainees, immediately after the training. Likewise, it is

undertakings to help themselves and their communities.

centers and sustainability of operation.

Scholarship Program (TWSP) and Special Training for Employment Program

(STEP). TWSP is a scholarship program that provides immediate interventions to

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

allowance per day for the duration of the training.

opportunities are determined by the various factors namely; marketing strategy,

management and organization, operations and financial performance. Marketing

company’s value proposition, key brand messaging, data on target trainees

resources. It also goes well beyond a corporate structure; it requires administrators,

processes need to make the organization function. Lastly, financial performance as

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

that it measures the results of a training center operations in monetary terms. By

Today, there is an increasing recognition of TVET’s role in the development of

centers in the province of Batangas offering TESDA registered programs are

changed the settings and environment of workshops/workplaces in many industries.

lower government budget/investment in TVET resulting to the dearth investment in

and equip such training facility.

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

trainers or program experts central to the delivery of various TVET programs

particularly in critical or priority trades is decreasing. More than decreasing the

for an intensive implementation of an assessment program for trainers. Relative to

partnership, interest of big industries to collaborate/open their factories to

government/TESDA proposed training arrangement/packages is becoming limited. It

in secondary education (K+12) and diminishing interest of present generation in

agriculture related qualifications and career.

The persisting low regard/status of TVET in the Philippine education system

is another challenge met by administrators of training centers not only in Batangas

Education and Skills Development Authority (TESDA) . Report on TESDA released in

2013 that highlighted a number of questionable payments to some technical