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CHAPTER 2

Review of Related Literature and Studies

This chapter deals with the cited literatures and studies of the other institutions and
authors to substantiate the development and findings of the present research.

Foreign Literature

Ross (2000) mentioned that industries complain that new recruits from schools
sometimes do not have the basic tools that are required. The skills mostly in demand by the
employers, as measured by the wide range of skills asked of future employees, are typically the
least in supply, as measured by the skills, abilities and competencies that university graduates
bring the job. He emphasized that the goal of education is to equip children to the best of their
ability, for lively, constructive place in society, and also to fit them to do a job for work.

Allen (1998) presented two contending theories about the role of advance education in
the involving world of economy. These theories are the common view and the Organization of
Cooperation and Development. According to the common view, high unemployment and falling
incomes due to globalization and the pressure of imports from low wage countries characterize
the new world economy. The only way to get a job today is to exactly meet the needs of
employers and that is having the specific skills they require at the moment hiring. In the past
before globalization and high unemployment, a general education might have been acceptable
because employers could not be choosy in their hiring. General academic preparation like
humanities, Social Sciences, and even natural sciences should be cut back, university resources
should be concentrated on professional programs and more sweeping one-and two-year college
programs aimed at imparting specific skills should be expanded. The second theory about the
labor market is the Organization of Economic Cooperation and Development model. The OECD
is an important international organization whose views are highly influential. According to the
OECD model, the demand for labor of all industrialized countries has increased strongly for
people with college or university education and has declined for people with high school
education or less. These changes reflect the twin processes of globalization and technological
change.

Hoyt (1975) says that employment, unemployment and underemployment have gained
serious implications for educators. The education system can and should do a great deal to
prepare graduates for employment, which is to make them employable. It is employability then,
not employment that should be the prime responsibility of education with respect to the problems
of graduates with becoming members of the occupational society. He then further said that in
solving high unemployment among graduates, employability skills rather than entry level skills
should be the focus of schools. If this aim is to be reached, it will mean major change in
schooling. The basic strategy for bringing this about is to reallocate current education resources.
The broader community must join forces with the education system. Some attempts to implement
educational change the strategy have been carried out under the banner “ career education|” It is
difficult but not an impossible task. This idea of career education is further bolstered by Marland
(1977), who contents the career education must not be seen as the enemy of liberal arts but as
their salvation. It can enliven the classroom, given good models of curricular design and teaching
strategies and style. Faculty members may well choose to adopt the career education concept as a
mean; of improving instruction. If students perceive liberal arts as extraneous to their own
momentary materialistic objectives, teachers may become aware that conscious and thoughtful
attention to the relationship between education and work can be woven into their subject matter
and that subject matter will be no less worthy and scholarly.

As Rumberger (1984) alleged, college graduates hold a competitive edge in the labor
market. They are more likely to find hig-level professional Jobs than workers with less
education. Yet not all college graduates secure high level jobs. Based on the skill level of
occupations, as similar portion employed in lower jobs such as secretary, and service workers,
where a college education is hardly necessary number will be forced to accept jobs
incommensurate with their level of training.

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